APACorporationNASDAQ_APA_202310-K.pdf

1、UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 10-K(Mark One)ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended December 31,2023or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 193

2、4For the transition period from to Commission file number 1-40144APA CORPORATION(Exact name of registrant as specified in its charter)Delaware 86-1430562(State or other jurisdiction of incorporation or organization)(I.R.S.Employer Identification No.)One Post Oak Central,2000 Post Oak Boulevard,Suite

3、 100,Houston,Texas 77056-4400(Address of principal executive offices)(Zip Code)Registrants telephone number,including area code(713)296-6000Securities registered pursuant to Section 12(b)of the Act:Title of each classTrading Symbol(s)Name of each exchange on which registeredCommon Stock,$0.625 par v

4、alueAPANasdaq Global Select MarketSecurities registered pursuant to section 12(g)of the Act:NoneIndicate by check mark if the registrant is a well-known seasoned issuer,as defined in Rule 405 of the Securities Act.Yes No Indicate by check mark if the registrant is not required to file reports pursua

5、nt to Section 13 or Section 15(d)of the Act.Yes No Indicate 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 of1934 during the preceding 12 months(or for such shorter period that the registrant was required to file

6、 such reports),and(2)has been subject tosuch filing requirements for the past 90 days.Yes No Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule405 of Regulation S-T(232.405 of this chapter)during the preced

7、ing 12 months(or for such shorter period that the registrant was required tosubmit such files).Yes No Indicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,a smaller reporting company,or an emerging growth company.See the definitions

8、of“large accelerated filer,”“accelerated filer,”“smaller reporting company,”and“emerginggrowth company”in Rule 12b-2 of the Exchange Act.Large accelerated filer Accelerated filer Non-accelerated filer Smaller reportingcompany Emerging growth company If an emerging growth company,indicate by check ma

9、rk if the registrant has elected not to use the extended transition period for complying withany new or revised financial accounting standards provided pursuant to Section 13(a)of the Exchange Act.Indicate by check mark whether the registrant has filed a report on and attestation to its managements

10、assessment of the effectiveness of itsinternal control over financial reporting under Section 404(b)of the Sarbanes-Oxley Act(15 U.S.C.7262(b)by the registered public accountingfirm that prepared or issued its audit report.If securities are registered pursuant to Section 12(b)of the Act,indicate by

11、check mark whether the financial statements of the registrant includedin the filing reflect the correction of an error to previously issued financial statements.Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compens

12、ationreceived by any of the registrants executive officers during the relevant recovery period pursuant to 240.10D-1(b).Indicate by check mark whether the registrant is a shell company(as defined in Rule 12b-2 of the Act):Yes No Aggregate market value of the voting and non-voting common equity held

13、by non-affiliates of registrant as of June 30,2023$10,499,243,068 Number of shares of registrants common stock outstanding as of January 31,2024301,818,820 2025/1/17 23:42apa-20231231https:/www.sec.gov/Archives/edgar/data/1841666/000178403124000003/apa-20231231.htm1/1522025/1/17 23:42apa-20231231htt

14、ps:/www.sec.gov/Archives/edgar/data/1841666/000178403124000003/apa-20231231.htm2/152Documents Incorporated By ReferencePortions of the registrants definitive proxy statement relating to the registrants 2024 annual meeting of stockholders are incorporated byreference in Part II and Part III of this A

15、nnual Report on Form 10-K.2025/1/17 23:42apa-20231231https:/www.sec.gov/Archives/edgar/data/1841666/000178403124000003/apa-20231231.htm3/152TABLE OF CONTENTS Item PagePART I1.BUSINESS11A.RISK FACTORS191B.UNRESOLVED STAFF COMMENTS301C.CYBERSECURITY302.PROPERTIES13.LEGAL PROCEEDINGS324.MINE SAFETY DIS

16、CLOSURES32PART II5.MARKET FOR THE REGISTRANTS COMMON EQUITY,RELATED STOCKHOLDER MATTERS,AND ISSUER PURCHASES OF EQUITY SECURITIES336.SELECTED FINANCIAL DATA347.MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTSOF OPERATIONS357A.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKE

17、T RISK588.FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA599.CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTINGAND FINANCIAL DISCLOSURE599A.CONTROLS AND PROCEDURES599B.OTHER INFORMATION609C.DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS60PART III10.DIRECTORS,EXECUTIVE OFFIC

18、ERS AND CORPORATE GOVERNANCE6111.EXECUTIVE COMPENSATION6112.SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT ANDRELATED STOCKHOLDER MATTERS6113.CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS,AND DIRECTORINDEPENDENCE6114.PRINCIPAL ACCOUNTING FEES AND SERVICES61PART IV15.EXHIBITS,FINANCI

19、AL STATEMENT SCHEDULES6216.FORM 10-K SUMMARY65 i2025/1/17 23:42apa-20231231https:/www.sec.gov/Archives/edgar/data/1841666/000178403124000003/apa-20231231.htm4/152FORWARD-LOOKING STATEMENTS AND RISKSThis Annual Report on Form 10-K includes“forward-looking statements”within the meaning of Section 27A

20、of theSecurities Act of 1933,as amended(the Securities Act),and Section 21E of the Securities Exchange Act of 1934,as amended(theExchange Act).All statements other than statements of historical facts included or incorporated by reference in this Annual Reporton Form 10-K,including,without limitation

21、,statements regarding the Companys future financial position,business strategy,budgets,projected revenues,projected costs,plans and objectives of management for future operations and capital returnsframework,the anticipated benefits of the proposed merger(the merger)between the Company and Callon Pe

22、troleum Company(Callon),the anticipated impact of the merger on the combined companys business and future financial and operating results,theanticipated financial and operational impact and timing of the expected synergies from the merger,and the anticipated closing datefor the merger,are forward-lo

23、oking statements.Such forward-looking statements are based on the Companys examination ofhistorical operating trends,the information that was used to prepare its estimate of proved reserves as of December 31,2023,andother data in the Companys possession or available from third parties.In addition,fo

24、rward-looking statements generally can beidentified by the use of forward-looking terminology such as“may,”“will,”“could,”“expect,”“intend,”“project,”“estimate,”“anticipate,”“plan,”“believe,”“continue,”“seek,”“guidance,”“goal,”“might,”“outlook,”“possibly,”“potential,”“prospect,”“should,”“would,”or s

25、imilar terminology,but the absence of these words does not mean that a statement is not forward looking.Although the Company believes that the expectations reflected in such forward-looking statements are reasonable under thecircumstances,it can give no assurance that such expectations will prove to

26、 have been correct.Important factors that could causeactual results to differ materially from the Companys expectations include,but are not limited to,its assumptions about:changes in local,regional,national,and international economic conditions,including as a result of any epidemics orpandemics,suc

27、h as the coronavirus disease(COVID-19)pandemic and any related variants;the market prices of oil,natural gas,natural gas liquids(NGLs),and other products or services,including the pricesreceived for natural gas purchased from third parties to sell and deliver to a U.S.LNG export facility;the Company

28、s 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,including market and macro-economic disruptions resulting from the Russian warin Ukraine,the armed conflict

29、in Israel and Gaza,and actions taken by foreign oil and gas producing nations,including theOrganization of the Petroleum Exporting Countries(OPEC)and non-OPEC members that participate in OPEC initiatives(OPEC+);the availability of capital resources;capital expenditures and other contractual obligati

30、ons;currency exchange rates;weather conditions;inflation rates;the impact of changes in tax legislation;the availability of goods and services;the impact of political pressure and the influence of environmental groups and other stakeholders on decisions and policiesrelated to the industries in which

31、 the Company and its affiliates operate;legislative,regulatory,or policy changes,including initiatives addressing the impact of global climate change or furtherregulating hydraulic fracturing,methane emissions,flaring,or water disposal;the Companys performance on environmental,social,and governance

32、measures;cyberattacks and terrorism;the Companys ability to access the capital markets;market-related risks,such as general credit,liquidity,and interest-rate risks;the ability to retain and hire key personnel;property acquisitions or divestitures;ii2025/1/17 23:42apa-20231231https:/www.sec.gov/Arch

33、ives/edgar/data/1841666/000178403124000003/apa-20231231.htm5/1522025/1/17 23:42apa-20231231https:/www.sec.gov/Archives/edgar/data/1841666/000178403124000003/apa-20231231.htm6/152the integration of acquisitions;the risk that the Companys or Callons stockholders may not approve the merger;uncertaintie

34、s as to the timing to consummate the merger,including the possibility that the merger is delayed or does notoccur;the risk that the Company or Callon may be unable to obtain governmental and regulatory approvals required for themerger,or that required governmental and regulatory approvals may delay

35、the merger or result in the imposition ofconditions that could reduce the anticipated benefits from the merger or cause the parties to abandon the merger;the risk that a condition to closing of the merger may not be satisfied in a timely manner or at all;the occurrence of events that may give rise t

36、o a right of one or both of the parties to terminate the merger agreement,including under circumstances that might require the Company or Callon to pay the other party a termination fee;the risk that the businesses will not be integrated successfully following the merger;the risk that the cost savin

37、gs,synergies,and growth from the merger may not be fully realized or may take longer torealize than expected;the diversion of management time on merger-related issues;the risks related to the Company and Callon being restricted in the operation of their respective businesses while themerger is pendi

38、ng;negative effects of the announcement of the potential completion of the merger on the market price of the Companyscommon stock,the Companys financial performance,and on relationships with the Companys customers,providers,vendors,competitors,management,and other employees;andother factors disclose

39、d under Items 1 and 2Business and PropertiesEstimated Proved Reserves and Future Net CashFlows,Item 1ARisk Factors,Item 7Managements Discussion and Analysis of Financial Condition and Results ofOperations,Item 7AQuantitative and Qualitative Disclosures About Market Risk and elsewhere in this Annual

40、Reporton Form 10-K.Other factors or events that could cause the Companys actual results to differ materially from the Companys expectationsmay emerge from time to time,and it is not possible for the Company to predict all such factors or events.All subsequent writtenand oral forward-looking statemen

41、ts attributable to the Company,or persons acting on its behalf,are expressly qualified in theirentirety by the cautionary statements.All forward-looking statements speak only as of the date of this Annual Report on Form 10-K.Except as required by law,the Company disclaims any obligation to update or

42、 revise these statements,whether based onchanges in internal estimates or expectations,new information,future developments,or otherwise.iii2025/1/17 23:42apa-20231231https:/www.sec.gov/Archives/edgar/data/1841666/000178403124000003/apa-20231231.htm7/152DEFINITIONSAll defined terms under Rule 4-10(a)

43、of Regulation S-X shall have their statutorily prescribed meanings when used in thisAnnual Report on Form 10-K.As used herein:“3-D”means three-dimensional.“4-D”means four-dimensional.“b/d”means barrels of oil or NGLs per day.“bbl”or“bbls”means barrel or barrels of oil or NGLs.“bcf”means billion cubi

44、c feet of natural gas.“bcf/d”means one bcf per day.“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 NGLs.“LNG”means liquefied n

45、atural gas.“Mb/d”means Mbbls per day.“Mbbls”means thousand barrels of oil or NGLs.“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 NGLs.“MMboe”means million boe.“MMBtu”means million Btu.

46、“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 the Un

47、ited 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 the Companys working interest in wells or acreage,“net”oil and gas wells or acreageis determined by multiplying gr

48、oss wells or acreage by the Companys working interest therein.Unless otherwise specified,allreferences to wells and acres are gross.iv2025/1/17 23:42apa-20231231https:/www.sec.gov/Archives/edgar/data/1841666/000178403124000003/apa-20231231.htm8/152References to“APA,”the“Company,”“we,”“us,”and“our”re

49、fer to APA Corporation and its consolidated subsidiaries,including Apache Corporation,unless otherwise specifically stated.References to“Apache”refer to Apache Corporation,theCompanys wholly owned subsidiary,and its consolidated subsidiaries,unless otherwise specifically stated.v2025/1/17 23:42apa-2

50、0231231https:/www.sec.gov/Archives/edgar/data/1841666/000178403124000003/apa-20231231.htm9/152PART IITEMS 1 and 2.BUSINESS AND PROPERTIESGENERALAPA Corporation(APA or the Company),is an independent energy company that owns consolidated subsidiaries that explorefor,develop,and produce natural gas,cru

51、de oil,and NGLs.The Companys upstream business has oil and gas operations in threegeographic areas:the U.S.,Egypt,and offshore the U.K.in the North Sea(North Sea).APA also has active exploration andappraisal operations ongoing in Suriname,as well as interests in Uruguay and other international locat

52、ions that may,over time,result in reportable discoveries and development opportunities.Prior to the BCP Business Combination(as defined below),theCompanys midstream business was operated by Altus Midstream Company(ALTM)through its subsidiary Altus Midstream LP(collectively,Altus).On March 1,2021,Apa

53、che Corporation consummated a holding company reorganization(the Holding CompanyReorganization),pursuant to which Apache Corporation became a direct,wholly owned subsidiary of APA Corporation,and all ofApache Corporations outstanding shares automatically converted into equivalent corresponding share

54、s of APA.Pursuant to theHolding Company Reorganization,APA became the successor issuer to Apache Corporation pursuant to Rule 12g-3(a)under theExchange Act and replaced Apache Corporation as the public company trading on the Nasdaq Global Select Market(Nasdaq)under the ticker symbol“APA.”The Holding

55、 Company Reorganization modernized the Companys operating and legal structure tomore closely align with its growing international presence,making it more consistent with other companies that have subsidiariesoperating around the globe.As a holding company,APA has no business operations of its own,an

56、d its only significant assets arethe outstanding equity interests of its subsidiaries.As such,most properties referred to herein are held by subsidiaries of APA.The Companys common stock,par value$0.625 per share,is listed on the Nasdaq.Through the Companys website,you can access,free of charge,elec

57、tronic copies of the charters of the committees of the Companys board ofdirectors(Board of Directors),other documents related to corporate governance(including the Code of Business Conduct andEthics and APAs Corporate Governance Principles),and documents the Company files with the SEC,including the

58、CompanysAnnual Reports on Form 10-K,Quarterly Reports on Form 10-Q,and Current Reports on Form 8-K,as well as any amendments tothese reports filed or furnished pursuant to Section 13(a)or 15(d)of the Exchange Act.Included in the Companys annual andquarterly reports are the certifications of its prin

59、cipal executive officer and its principal financial officer that are required byapplicable laws and regulations.Access to these electronic filings is available as soon as reasonably practicable after the Companyfiles such material with,or furnishes it to,the SEC.You may also request printed copies o

60、f the Companys corporate charter,bylaws,committee charters,or other governance documents free of charge by writing to the Companys corporate secretary at theaddress on the cover of this Annual Report on Form 10-K.The Companys reports filed with the SEC are made available on itswebsite at www.sec.gov

61、.From time to time,the Company also posts announcements,updates,and investor information on itswebsite in addition to copies of all recent press releases.Information on the Companys website or any other website is notincorporated by reference into,and does not constitute a part of,this Annual Report

62、 on Form 10-K.BUSINESS STRATEGYAPA maintains a diversified asset portfolio,including conventional and unconventional,onshore and offshore,oil and naturalgas exploration and production interests.In the U.S.,operations are primarily focused in the Permian Basin of West Texas andEastern New Mexico,with

63、 additional operations located in the Eagle Ford shale and Austin Chalk areas of Southeast Texas,offshore in the Gulf of Mexico,and along the Gulf Coast.The Company also commenced an exploration program in Alaska duringthe fourth quarter of 2023.Internationally,the Company has conventional onshore a

64、ssets in Egypts Western Desert,offshore assetson the U.K.s Continental Shelf,and an offshore appraisal and exploration program in Suriname.Rigorous management of the Companys asset portfolio plays a key role in optimizing shareholder value over the long term.Over the past several years,APA has enter

65、ed into a series of transactions that have upgraded its portfolio of assets,enhanced itscapital allocation process to further optimize investment returns,and increased focus on internally generated exploration with full-cycle,returns-focused growth.Management actively reviews certain non-strategic a

66、ssets for opportunities,which include potentialmonetization of legacy properties and other non-core leasehold positions.12025/1/17 23:42apa-20231231https:/www.sec.gov/Archives/edgar/data/1841666/000178403124000003/apa-20231231.htm10/152In late 2021,the Company refreshed the economic foundation for i

67、ts business in Egypt with the ratification of a mergedconcession agreement(MCA)with the Egyptian Ministry of Petroleum and the Egyptian General Petroleum Corporation(EGPC).The MCA consolidated the majority of the Companys gross acreage and production in Egypt under one concession agreement andrefres

68、hed existing development and exploration lease terms.On February 22,2022,ALTM closed on a transaction to combine with privately owned BCP Raptor Holdco LP(BCP)in anall-stock transaction.Upon closing the transaction,the combined entity was renamed Kinetik Holdings Inc.(Kinetik),and APAsownership in A

69、LTM was reduced from approximately 79 percent to approximately 20 percent.Upon closing the transaction,theCompany deconsolidated ALTM.The deconsolidation provides a number of benefits to APA shareholders,including simplificationof the Companys financial reporting and enhanced comparability with its

70、upstream-only peers,while maintaining a noncontrollinginterest in future growth opportunities of Kinetik.Subsequent sales of the Companys shares of Kinetik Class A Common Stock(Kinetik Shares)have reduced APAs ownership in Kinetik to approximately 9 percent.On January 3,2024,APA and Callon Petroleum

71、 Company(Callon)entered into a definitive agreement,pursuant to whichAPA will acquire Callon in an all-stock transaction valued at approximately$4.5 billion,inclusive of Callons net debt.In this all-stock transaction,each eligible outstanding share of Callon common stock will be exchanged for 1.0425

72、 shares of APA commonstock.After closing,existing APA shareholders are expected to own approximately 81 percent of the combined company,andexisting Callon shareholders are expected to own approximately 19 percent of the combined company.This transactioncomplements and enhances APAs asset base in the

73、 Permian Basin and adds to APAs inventory of high quality,short-cycleopportunities.In addition,Callons assets provide additional scale to APAs operations across the Permian Basin.Uncertainties in the global supply chain and financial markets,including the impact of inflation,and rising interest rate

74、s,andactions taken by foreign oil and gas producing nations,including OPEC+,continue to impact oil supply and demand and contributeto commodity price volatility.Despite these uncertainties,the Company remains committed to its longer-term objectives:(1)tomaintain a balanced asset portfolio,including

75、advancement of activities offshore Suriname;(2)to invest for long-term returns overproduction growth;and(3)to budget conservatively to generate cash flow in excess of its upstream exploration,appraisal,anddevelopment capital program that can be directed to debt reduction,share repurchases,and other

76、return of capital to itsshareholders.The Company continues to aggressively manage its cost structure regardless of the oil price environment and closelymonitors hydrocarbon pricing fundamentals to reallocate capital as part of its ongoing planning process.For a more in-depth discussion of the Compan

77、ys 2023 results,divestitures,strategy,and its capital resources and liquidity,please see Part II,Item 7Managements Discussion and Analysis of Financial Condition and Results of Operations of this AnnualReport on Form 10-K.22025/1/17 23:42apa-20231231https:/www.sec.gov/Archives/edgar/data/1841666/000

78、178403124000003/apa-20231231.htm11/152BUSINESS OVERVIEWThe following business overview further describes the operations and activities for the Companys upstream exploration andproduction properties,by geographic region.UPSTREAM EXPLORATION AND PRODUCTIONOperating AreasAPAs upstream business has oil

79、and gas operations in three geographic areas:the U.S.,Egypt,and offshore the U.K.in theNorth Sea.APA also has active exploration and appraisal operations ongoing in Suriname,as well as interests in Uruguay and otherinternational locations that may,over time,result in reportable discoveries and devel

80、opment opportunities.The following table sets out a brief comparative summary of certain key 2023 data for each of the Companys operatingareas.Additional data and discussion are provided in Part II,Item 7Managements Discussion and Analysis of FinancialCondition and Results of Operations of this Annu

81、al Report on Form 10-K.ProductionPercentageof TotalProductionProductionRevenueYear-EndEstimatedProvedReservesPercentageof TotalEstimatedProvedReservesGrossWellsDrilledGrossProductiveWellsDrilled(In MMboe)(In millions)(In MMboe)United States79.3 54%$3,018 566 70%127 127 Egypt52.3 35%3,029 171 21%123

82、91 North Sea16.2 11%1,338 70 9%2 2 Other International 2 Total147.8 100%$7,385 807 100%254 220(1)The Companys operations in Egypt,excluding the impacts of a one-third noncontrolling interest,contributed 27 percent of 2023 production and accounted for15 percent of year-end 2023 estimated proved reser

83、ves.(2)Sales volumes from the Companys North Sea assets for 2023 were 16.6 MMboe.Sales volumes may vary from production volumes as a result of the timing ofliftings.United StatesIn 2023,the Companys U.S.upstream oil and gas operations contributed approximately 54 percent of production,41 percentof o

84、il and gas revenues,and 70 percent of estimated year-end proved reserves.APA has access to significant liquid hydrocarbonsacross its 3.7 million gross acres(1.8 million net acres)in the U.S.,76 percent of which are undeveloped.The Companys U.S.assets are primarily located in the Permian Basin in Wes

85、t Texas and New Mexico,including thePermian sub-basins:Midland Basin,Central Basin Platform/Northwest Shelf,and Delaware Basin.Examples of shale plays beingdeveloped within these sub-basins include the Woodford,Barnett,Pennsylvanian,Cline,Wolfcamp,Bone Spring,and Spraberry.The Company is one of the

86、largest operators in the Permian Basin,operating approximately 5,000 gross oil and gas wells across itsacreage,with additional interests in less than 3,000 non-operated wells.APA also has operations located in the Eagle Ford shaleand Austin Chalk areas of Southeast Texas,offshore in the Gulf of Mexi

87、co,and along the Gulf Coast in South Texas and Louisiana.Highlights of the Companys operations in the U.S.include:Southern Midland Basin APA holds approximately 786,000 gross acres(450,000 net acres)in the Southern Midland Basinand the Eagle Ford shale and Austin Chalk areas of southeast Texas.Durin

88、g 2023,the Company primarily targeted oilplays in the Wolfcamp and Spraberry formations,drilling 69 gross development wells in this basin with a 100 percentsuccess rate.Delaware Basin APA holds approximately 233,000 gross acres(135,000 net acres)in the Delaware Basin,includingopportunities in the Bo

89、ne Spring and other formations of Eastern New Mexico and bordering West Texas,and the AlpineHigh play in the southern portion of the Permian Basin,primarily in Reeves County,Texas.During 2023,the Companydrilled 57 gross development wells in this basin with a 100 percent success rate.(1)(2)32025/1/17

90、 23:42apa-20231231https:/www.sec.gov/Archives/edgar/data/1841666/000178403124000003/apa-20231231.htm12/152Legacy Assets APA holds approximately 2.4 million gross acres(1.1 million net acres)in legacy properties,of whichapproximately 577,000 gross acres are in the offshore waters of the Gulf of Mexic

91、o.Consistent with the Companysbroader portfolio management efforts,certain non-strategic leasehold positions on its legacy acreage holdings provideadditional monetization opportunities that continue to be evaluated.New Venture Assets APA separately has undeveloped acreage positions across several st

92、ates,where it intends to pursueexploration interests and potential development opportunities over time.During the fourth quarter of 2023,the Companycommenced an exploration program in Alaska,where it anticipates drilling three exploration wells in the first half of 2024.The Company is committed to m

93、aintaining a safe,steady,and efficient level of activity as part of its three-year capitalinvestment program.For 2024,the Company will continue to budget its capital program at levels to fund activity necessary tooffset inherent declines in production and proved oil and natural gas reserves.Future r

94、ig activity levels and drilling targets will bedependent on the success of the Companys drilling program and its ability to add reserves economically.U.S.Marketing The Company sells its U.S.natural gas production at liquid index sales points within the U.S.,at eithermonthly or daily index-based pric

95、es.In addition,to satisfy a delivery commitment that began in 2023,the Company purchasesthird party natural gas to sell and deliver to a U.S.LNG export facility.The tenor of the Companys sales contracts span from dailyto multi-year transactions.Natural gas is sold to a variety of customers that incl

96、ude local distribution,utility,and midstreamcompanies,as well as end-users,marketers,and integrated major oil companies.APA strives to maintain a diverse client portfolio,which is intended to reduce the concentration of credit risk.APA primarily markets its U.S.crude oil production to integrated maj

97、or oil companies,marketing and transportationcompanies,and refiners based on West Texas Intermediate(WTI)pricing indices(e.g.,WTI Houston,West Texas Sour(WTS),WTI Midland,or West Texas Light(WTL)Midland)and some predominately Brent related international pricing indices,adjustedfor quality,transporta

98、tion,and a market-reflective differential.The Companys objective is to maximize the value of crude oil soldby identifying the best markets and most economical transportation routes available to move the product.Sales contracts aregenerally 30-day evergreen contracts that renew automatically until ca

99、nceled by either party.These contracts provide for sales thatare priced daily at prevailing market prices.Also,from time to time,the Company will enter into physical term sales contracts.These term contracts typically have a firm transportation commitment and often provide an opportunity for higher

100、than prevailingmarket prices.APAs U.S.NGL production is sold under contracts with prices based on Gulf Coast supply and demand conditions,less thecosts for transportation and fractionation,or on a weighted-average sales price received by the purchaser.U.S.Delivery Commitments The Company has long-te

101、rm delivery commitments for natural gas and crude oil that requireAPA to deliver an average of 161 Bcf of natural gas per year for the period from 2024 through 2029,an average of 49 Bcf ofnatural gas per year for the period from 2030 through 2037,and an average of 4.9 MMbbls of crude oil per year fo

102、r the period from2024 through 2025,in each case,at variable,domestic and/or international,market-based pricing.APA currently expects to fulfill its delivery commitments with production from its proved reserves,production fromcontinued development,and/or third-party purchases.APA may also enter into

103、contractual arrangements to reduce its deliverycommitments.The Company has not experienced any significant constraints in satisfying the committed quantities required by itsdelivery commitments.For more information regarding the Companys commitments,please see Part II,Item 7Managements Discussion an

104、dAnalysis of Financial Condition and Results of OperationsCapital Resources and LiquidityContractual Obligations of thisAnnual Report on Form 10-K.InternationalIn 2023,international assets contributed 46 percent of APAs production and 59 percent of its oil and gas revenues.Approximately 30 percent o

105、f estimated proved reserves at year-end 2023 were located outside the U.S.42025/1/17 23:42apa-20231231https:/www.sec.gov/Archives/edgar/data/1841666/000178403124000003/apa-20231231.htm13/152APA has two international locations with ongoing development and production operations:Egypt,which includes on

106、shore conventional assets located in Egypts Western Desert;andthe North Sea,which includes offshore assets based in the U.K.The Company also has an active offshore exploration program and appraisal operations ongoing in Suriname,and interests inUruguay and other international locations that may,over

107、 time,result in reportable discoveries and development opportunities.Egypt APA has decades of exploration,development and operations experience in Egypt and is one of the largest acreageholders in Egypts Western Desert.At year-end 2023,the Company held 5.3 million gross acres in six separate concess

108、ions.TheCompanys acreage is primarily held under one concession agreement that resulted from the ratification of a new MCA with theEgyptian Ministry of Petroleum and EGPC.The MCA,which has an effective date of April 1,2021,consolidated 98 percent ofgross acreage and 90 percent of gross production un

109、der one concession agreement and refreshed the existing development leaseterms for 20 years and exploration leases for 5 years.The consolidated concession has a single cost recovery pool to provideimproved access to cost recovery,a fixed 40 percent cost recovery limit,and a fixed profit-sharing rate

110、 of 30 percent for all theCompanys production covered under the concession.Development leases within concessions currently have expiration datesranging from 1 to 20 years,with extensions possible for additional commercial discoveries or on a negotiated basis.Approximately67 percent of the Companys g

111、ross acreage in Egypt is undeveloped,providing APA with considerable exploration anddevelopment opportunities for the future.APAs Egypt operations are conducted pursuant to production-sharing contracts(PSCs).Under the terms of the CompanysPSCs,the Company is the contractor partner(Contractor)with EG

112、PC and bears the risk and cost of exploration,development,andproduction activities.In return,if exploration is successful,the Contractor receives entitlement to variable physical volumes ofhydrocarbons,representing recovery of the costs incurred and a stipulated share of production after cost recove

113、ry.Additionally,theContractors income taxes,which remain the liability of the Contractor under domestic law,are paid by EGPC on behalf of theContractor 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 r

114、evenue and income tax expense and are reflected as production and estimated reserves.BecauseContractor cost recovery entitlement and income taxes paid on its behalf are determined as a monetary amount,the quantities ofproduction entitlement and estimated reserves attributable to these monetary amoun

115、ts will fluctuate with commodity prices.Inaddition,because the Contractor income taxes are paid by EGPC,the amount of the income tax has no economic impact on theCompanys Egypt operations despite impacting the Companys production and reserves.The APA subsidiary that is the sole Contractor under the

116、MCA is owned by an APA-operated joint venture owned two-thirdsby the Company and one-third by Sinopec International Petroleum Exploration and Production Corporation(Sinopec).The Companys estimated proved reserves in Egypt are reported under the economic interest method and exclude the hostcountrys s

117、hare of reserves.Through the joint venture,Sinopec holds a one-third minority participation interest in the Companysoil and gas operations in Egypt.The Companys Egypt assets,including the one-third noncontrolling interest,contributed 35percent of 2023 production and 21 percent of 2023 year-end estim

118、ated proved reserves.Excluding the impacts of thenoncontrolling interest,Egypt contributed 27 percent of 2023 production and 15 percent of 2023 year-end estimated provedreserves.In 2023,the Company drilled 75 gross development and 48 gross exploration wells in Egypt.A key component of theCompanys su

119、ccess has been the ability to acquire and evaluate 3-D seismic surveys that enable the Companys technical teams toconsistently high-grade existing prospects and identify new targets across multiple pay horizons in the Cretaceous,Jurassic,anddeeper Paleozoic formations.The Company has completed seism

120、ic surveys covering three million acres,which has led to recentdiscoveries that build and enhance the Companys drilling inventory in Egypt.The Company will continue to focus on drivingefficiencies and managing costs under the MCA.North Sea The Company has interests in approximately 292,000 gross acr

121、es in the U.K.North Sea.These assets contributed11 percent of the Companys 2023 production and approximately 9 percent of year-end 2023 estimated proved reserves.52025/1/17 23:42apa-20231231https:/www.sec.gov/Archives/edgar/data/1841666/000178403124000003/apa-20231231.htm14/152The Company entered th

122、e North Sea in 2003 after acquiring an approximate 97 percent working interest in the Forties field(Forties).In 2011,the Company acquired Mobil North Sea Limited,which included operated interests in the Beryl,Ness,Nevis,Nevis South,Skene,and Buckland fields and a non-operated interest in the Maclure

123、 field.The Company also has a non-operatedinterest in the Nelson field acquired in 2011.During the second quarter of 2023,as part of the Companys focus on capitalallocation to optimize investment returns,it suspended all new drilling activity in the North Sea.The Companys investmentprogram there is

124、now directed toward safety,base production management,and asset maintenance and integrity.International Marketing The Companys natural gas production in Egypt is sold to EGPC primarily under an industry-pricing formula,a sliding scale based on Dated Brent crude oil with a minimum of$1.50 per MMBtu a

125、nd a maximum of$2.65 perMMBtu,plus an upward adjustment for liquids content.Crude oil production is sold to third parties in the export market or toEGPC when called upon to supply domestic demand.Oil production sold to third parties is sold and exported from one of twoterminals on the northern coast

126、 of Egypt.Oil production sold to EGPC is sold at prices related to the export market.The Companys North Sea crude oil production is sold under term,entitlement volume contracts and spot variable volumecontracts with a market-based index price plus a differential to capture the higher market value un

127、der each type of arrangement.Natural gas from the Beryl field is processed through the Scottish Area Gas Evacuation(SAGE)gas plant,operated by AncalaMidstream Acquisitions Limited.Natural gas is sold to a third party at the St.Fergus entry point of the national grid on a NationalBalancing Point inde

128、x price basis.The condensate mix from the SAGE plant is processed further downstream.The split streams ofpropane,butane,and condensate are sold separately on a monthly entitlement basis at the Braefoot Bay terminal using indexpricing less transportation.Other ExplorationNew Ventures APAs internation

129、al New Ventures acreage provides exposure to new growth opportunities outside of theCompanys traditional core areas and provides higher-risk,higher-reward exploration opportunities located in frontier basins aswell as new plays in more mature basins.The Company has a joint venture agreement with Tot

130、alEnergies(formerly Total S.A.)to explore and develop Block 58offshore Suriname.The Company holds a 50 percent working interest in Block 58,which comprises approximately 1.4 milliongross acres in water depths ranging from less than 100 meters to more than 2,100 meters.TotalEnergies holds a 50 percen

131、t workinginterest in Block 58 as the operator.Key terms of the agreement provide for TotalEnergies to pay 50 percent of all explorationactivities and a proportionately larger share of appraisal and development costs,which would be recoverable through hydrocarbonparticipation.For the first$10 billion

132、 of gross capital expenditures,TotalEnergies pays 87.5 percent,and the Company pays 12.5percent;for the next$5 billion in gross expenditures,TotalEnergies pays 75 percent and the Company pays 25 percent;and for allgross expenditures above$15 billion,TotalEnergies pays 62.5 percent and the Company pa

133、ys 37.5 percent.The Company will alsoreceive various other forms of consideration,including a$75 million cash payment upon achieving first oil production and futurecontingent royalty payments from successful joint development projects.During 2023,the Company and TotalEnergies announced the launch of

134、 development studies for a large oil project in Block58.Successful appraisal of two key oil discoveries,with the drilling and testing of two wells at Sapakara South and three wells atKrabdagu,confirmed combined recoverable resources of an estimated 700 million barrels of oil for the two fields.These

135、 fields,located in water depths between 100 and 1,000 meters,are expected to be produced through a system of subsea wells connected toa floating production,storage and offloading unit located 150 kilometers off the Suriname coast,with an oil production capacity of200,000 b/d.Detailed engineering stu

136、dies are underway,and a final investment decision is expected by year-end 2024,with a firstproduction target in 2028.No additional drilling is anticipated on Block 58 through the end of 2024.The Company is also the operator of Block 53 offshore Suriname and holds a 45 percent working interest in the

137、 block.Exploration and evaluation of the area is ongoing.During 2023,the Company was granted an extension to retain approximately13,000 net undeveloped acres for its operated Baja discovery area,allowing the remaining net undeveloped acres to expire in Block53 as of the end of 2023.During 2023,the C

138、ompany signed a production sharing contract for Block 6 offshore Uruguay covering approximately fourmillion net undeveloped acres and expects to commence exploration activities in 2024.In February 2024,the Company also signeda production sharing contract for Block 4 offshore Uruguay.In December 2023

139、,the Company suspended further exploration activities in its approximately 630,000 net undeveloped acresoffshore the Dominican Republic.The Company has elected to voluntarily relinquish its net acreage holdings and anticipatescompletion of its withdrawal in early 2024.The Company continues to assess

140、,contract,and potentially explore undevelopedacreage positions in other international locations.2025/1/17 23:42apa-20231231https:/www.sec.gov/Archives/edgar/data/1841666/000178403124000003/apa-20231231.htm15/15262025/1/17 23:42apa-20231231https:/www.sec.gov/Archives/edgar/data/1841666/00017840312400

141、0003/apa-20231231.htm16/152Drilling StatisticsWorldwide in 2023,APA drilled or participated in drilling 254 gross wells,with 220 wells(87 percent)completed asproducers.Historically,APAs drilling activities in the U.S.have generally concentrated on exploitation and extension of existingproducing fiel

142、ds rather than exploration.As a general matter,the Companys operations outside of the U.S.focus on a mix ofexploration and development wells.In addition to wells completed during 2023,at year-end 2023,a number of wells had not yetreached completion:81 gross(74.2 net)in the U.S.,49 gross(49.0 net)in

143、Egypt,3 gross(2.5 net)in the North Sea,and 1 gross(0.5 net)in Suriname.The following table shows the results of the oil and gas wells drilled and completed for each of the last three fiscal years:Net ExploratoryNet DevelopmentTotal Net Wells ProductiveDryTotalProductiveDryTotalProductiveDryTotal2023

144、United States 78.4 78.4 78.4 78.4 Egypt24.0 24.0 48.0 66.1 7.7 73.8 90.1 31.7 121.8 North Sea1.2 1.2 1.2 1.2 Other International 0.3 0.3 0.3 0.3 Total25.2 24.3 49.5 144.5 7.7 152.2 169.7 32.0 201.7 2022United States 40.7 40.7 40.7 40.7 Egypt15.0 14.5 29.5 64.4 64.4 79.4 14.5 93.9 North Sea1.0 1.0 1.

145、0 1.0 2.0 2.0 Other International 2.1 2.1 2.1 2.1 Total16.0 16.6 32.6 106.1 106.1 122.1 16.6 138.7 2021United States 67.9 67.9 67.9 67.9 Egypt10.0 14.0 24.0 28.5 1.0 29.5 38.5 15.0 53.5 North Sea0.6 0.5 1.1 1.8 0.5 2.3 2.4 1.0 3.4 Other International 1.3 1.3 1.3 1.3 Total10.6 15.8 26.4 98.2 1.5 99.7

146、 108.8 17.3 126.1 Productive Oil and Gas WellsThe number of productive oil and gas wells,operated and non-operated,in which the Company had an interest as ofDecember 31,2023,is set forth below:OilGasTotal GrossNetGrossNetGrossNetUnited States7,871 4,603 1,044 740 8,915 5,343 Egypt1,084 1,047 108 105

147、 1,192 1,152 North Sea148 106 10 6 158 112 Total9,103 5,756 1,162 851 10,265 6,607 Domestic7,871 4,603 1,044 740 8,915 5,343 Foreign1,232 1,153 118 111 1,350 1,264 Total9,103 5,756 1,162 851 10,265 6,607 Gross natural gas and crude oil wells included 457 wells with multiple completions.72025/1/17 23

148、:42apa-20231231https:/www.sec.gov/Archives/edgar/data/1841666/000178403124000003/apa-20231231.htm17/152Production,Pricing,and Lease Operating Cost DataThe following table describes,for each of the last three fiscal years,oil,NGL,and gas production volumes,average leaseoperating costs per boe(includi

149、ng transportation costs but excluding severance and other taxes),and average sales prices for eachof the countries where the Company has operations:ProductionAverage LeaseOperating Cost per BoeAverage Sales PriceOilNGLGasOilNGLGasYear Ended December 31,(MMbbls)(MMbbls)(Bcf)(Per bbl)(Per bbl)(Per Mcf

150、)2023United States28.8 23.0 165.1$10.62$77.84$20.85$1.80 Egypt32.5 118.9 9.70 82.47 2.91 North Sea12.7 0.4 18.3 25.34 82.75 47.77 13.02 Total74.0 23.4 302.3 11.95 80.72 21.54 2.91 2022United States25.7 22.8 172.8$10.73$95.68$33.41$5.31 Egypt31.1 0.1 130.1 10.37 101.25 76.80 2.85 North Sea11.9 0.4 12

151、.8 30.07 100.87 67.07 23.36 Total68.7 23.3 315.7 12.59 99.11 34.51 4.98 2021United States27.4 24.2 192.5$8.37$67.37$27.85$3.92 Egypt25.7 0.2 96.2 11.48 70.33 48.84 2.81 North Sea13.2 0.4 14.1 26.12 69.67 54.30 12.96 Total66.3 24.8 302.8 11.31 68.97 28.48 3.99(1)Includes production volumes attributab

152、le to a one-third noncontrolling interest in Egypt.(2)Sales volumes from the Companys North Sea assets for 2023,2022,and 2021 were 16.6 MMboe,14.9 MMboe,and 16.1 MMboe,respectively.Sales volumesmay vary from production volumes as a result of the timing of liftings.Gross and Net Undeveloped and Devel

153、oped AcreageThe following table summarizes the Companys gross and net acreage position by geographic area as of December 31,2023:Undeveloped AcreageDeveloped Acreage Gross AcresNet AcresGross AcresNet Acres(In thousands)United States2,800 1,286 886 546 Egypt3,567 3,567 1,728 1,681 North Sea133 116 1

154、59 123 Other International6,177 5,440 Total12,677 10,409 2,773 2,350 As of December 31,2023,the Company held approximately 117,000 net undeveloped acres that are scheduled to expire byyear-end 2024 if production is not established or the Company takes no action to extend the terms.Nearly all of the

155、Companysacreage expiring in 2024 is offshore the U.K.in the North Sea.The Company also held approximately 16,000 and 724,000 netundeveloped acres set to expire by year-end 2025 and 2026,respectively.Exploration concessions covering the CompanysEgyptian acreage were extended in 2021 upon ratification

156、 of the MCA with the EGPC,and no acreage is scheduled to expire before2026.The Company will continue to pursue acreage extensions and access to new concessions in areas in which it believesexploration opportunities exist.The Company strives to extend the terms of many of these licenses and concessio

157、n areas throughoperational or administrative actions but cannot assure that such extensions can be achieved on an economic basis or otherwise onterms agreeable to both the Company and third parties,including governments.No oil and gas reserves were recorded on thisundeveloped acreage set to expire.A

158、s of December 31,2023,approximately 88 percent of U.S.net undeveloped acreage was held by production or owned asundeveloped mineral rights.(1)(2)(1)(2)(1)(2)82025/1/17 23:42apa-20231231https:/www.sec.gov/Archives/edgar/data/1841666/000178403124000003/apa-20231231.htm18/152The Company held approximat

159、ely 5.4 million net undeveloped acres as of December 31,2023,in international locationsseparate from positions held in its established U.K.and Egypt locations.Exploration interests include Block 53 and Block 58offshore Suriname,Block 6 offshore Uruguay,and offshore the Dominican Republic.The Company

160、 continues to actively evaluate and analyze several discoveries on its Block 58 offshore Suriname explorationacreage with its operator partner,TotalEnergies.Approximately 720,000 net undeveloped acres in Block 58 have a currentexpiration date of June 2026 assuming no further actions are taken to ext

161、end.Separately during 2023,the Company was granted anextension to retain approximately 13,000 net undeveloped acres for its operated Baja discovery area,allowing the remaining netundeveloped acres to expire in Block 53 as of the end of 2023.During 2023,the Company also signed a production sharing co

162、ntract for Block 6 offshore Uruguay covering approximatelyfour million net undeveloped acres and expects to commence exploration activities in 2024.In February of 2024,the Company alsosigned a production sharing contract for Block 4 offshore Uruguay.In December 2023,the Company suspended further exp

163、loration activities in its approximately 630,000 net undeveloped acresoffshore the Dominican Republic.The Company has elected to voluntarily relinquish its net acreage holdings and anticipatescompletion of its withdrawal in early 2024.The Company continues to assess,contract,and potentially explore

164、undeveloped acreage positions in other internationallocations.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 ofgeoscience and engineering data,can be estimated with reasonable certaint

165、y to be economically producible from a given dateforward,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 through existing wells with existing equipmentand operati

166、ng methods.The Company reports all estimated proved reserves held under production-sharing arrangements utilizingthe“economic interest”method,which excludes the host countrys share of reserves.Estimated reserves that can be produced economically through application of improved recovery techniques ar

167、e included inthe“proved”classification when successful testing by a pilot project or the operation of an active,improved recovery programusing reliable technology establishes the reasonable certainty for the engineering analysis on which the project or program is based.Economically producible means

168、a resource that generates revenue that exceeds,or is reasonably expected to exceed,the costs ofthe operation.Reasonable certainty means a high degree of confidence that the quantities will be recovered.Reliable technology isa grouping of one or more technologies(including computational methods)that

169、has been field-tested and has been demonstrated toprovide reasonably certain results with consistency and repeatability in the formation being evaluated or in an analogous formation.In estimating its proved reserves,APA uses several different traditional methods that can be classified in three gener

170、al categories:(1)performance-based methods;(2)volumetric-based methods;and(3)analogy with similar properties.The Company will,attimes,utilize additional technical analysis,such as computer reservoir models,petrophysical techniques,and proprietary 3-Dseismic interpretation methods,to provide addition

171、al support for more complex reservoirs.Information from this additionalanalysis is combined with traditional methods outlined above to enhance the certainty of the Companys reserve estimates.Proved undeveloped reserves include those reserves that are expected to be recovered from new wells on undril

172、led acreage,or from existing wells where a relatively major expenditure is required for recompletion.Undeveloped reserves may be classifiedas proved reserves on undrilled acreage directly offsetting development areas that are reasonably certain of production whendrilled,or where reliable technology

173、provides reasonable certainty of economic producibility.Undrilled locations may be classifiedas having undeveloped reserves only if a development plan has been adopted indicating that they are scheduled to be drilled withinfive years,unless specific circumstances justify a longer time period.92025/1

174、/17 23:42apa-20231231https:/www.sec.gov/Archives/edgar/data/1841666/000178403124000003/apa-20231231.htm19/152The following table shows proved oil,NGL,and gas reserves as of December 31,2023,based on average commodity pricesin effect on the first day of each month in 2023,held flat for the life of th

175、e production,except where future oil and gas sales arecovered by physical contract terms.The total column of this table shows reserves on a boe basis in which natural gas is convertedto an equivalent barrel of oil based on a ratio of 6 Mcf to 1 bbl.This ratio is not reflective of the current price r

176、atio between the twoproducts.OilNGLGasTotal(MMbbls)(MMbbls)(Bcf)(MMboe)Proved Developed:United States180 153 1,004 500 Egypt102 377 165 North Sea61 2 47 70 Total343 155 1,428 735 Proved Undeveloped:United States31 18 99 66 Egypt5 3 6 North Sea Total36 18 102 72 Total Proved379 173 1,530 807(1)Includ

177、es total proved developed and total proved undeveloped reserves of 55 MMboe and 2 MMboe,respectively,attributable to a one-third noncontrollinginterest in Egypt.As of December 31,2023,the Company had total estimated proved reserves of 379 MMbbls of crude oil,173 MMbbls ofNGLs,and 1.5 Tcf of natural

178、gas.Combined,these total estimated proved reserves are the volume equivalent of 807 million boe,ofwhich liquids represent approximately 68 percent.As of December 31,2023,the Companys proved developed reserves totaled 735MMboe and estimated proved undeveloped(PUD)reserves totaled 72 MMboe,or approxim

179、ately 9 percent of worldwide totalproved reserves.APA has elected not to disclose probable or possible reserves in this filing.The Company had no fields thatcontained 15 percent or more of its total proved reserves for the year ended December 31,2023.The Company had one field thatcontained 15 percen

180、t or more of its total proved reserves for each of the years ended December 31,2022 and 2021.During 2023,the Company added approximately 112 MMboe from extensions,discoveries,and other additions.TheCompany recorded 96 MMboe of exploration and development adds in the U.S.,comprising 67 MMboe in the P

181、ermian Basin,27MMboe in the Delaware Basin,and 2 MMboe in the Texas Gulf Coast.Drilling programs for the Permian and Delaware Basinsinclude the Wolfcamp,Bone Spring and Spraberry with the Austin Chalk as the primary focus for the Texas Gulf Coast.International operations contributed 16 MMboe of expl

182、oration and development adds,with Egypt contributing 15 MMboe fromonshore exploration and appraisal activity primarily in the Khalda Area and 1 MMboe from the North Sea.The Company hadcombined downward revisions of previously estimated reserves of 46 MMboe,primarily driven by revisions in the U.S.Do

183、wnwardrevisions for price and interest changes accounted for 83 MMboe,offset by engineering and performance upward revisions of 37MMboe.The Companys estimates of proved reserves,proved developed reserves,and PUD reserves as of December 31,2023,2022,and 2021,changes in estimated proved reserves durin

184、g the last three years,and estimates of future net cash flows from provedreserves are contained in Note 18Supplemental Oil and Gas Disclosures(Unaudited)in the Notes to Consolidated FinancialStatements set forth in Part IV,Item 15 of this Annual Report on Form 10-K.Estimated future net cash flows we

185、re calculated usinga discount rate of 10 percent per annum,end of period costs,and an unweighted arithmetic average of commodity prices in effecton the first day of each of the previous 12 months,held flat for the life of the production,except where prices are defined bycontractual arrangements.Prov

186、ed Undeveloped ReservesThe Companys total estimated PUD reserves of 72 MMboe as of December 31,2023,decreased by 16 MMboe from 88MMboe of PUD reserves reported at year end 2022.During 2023,the Company converted 39 MMboe of PUD reserves to proveddeveloped reserves through development drilling activit

187、y.In the U.S.,the Company converted 37 MMboe,with the remaining 2MMboe in its international areas.The Company had no sales nor purchases in place related to PUD reserves during 2023.TheCompany added 81 MMboe of new PUD reserves through extensions and discoveries.Downward revisions totaled 58 MMboe,c

188、omprising 13 MMboe associated with engineering and interest revisions,16 MMboe associated with revised development plans,and 29 MMboe associated with product prices.(1)(1)102025/1/17 23:42apa-20231231https:/www.sec.gov/Archives/edgar/data/1841666/000178403124000003/apa-20231231.htm20/1522025/1/17 23

189、:42apa-20231231https:/www.sec.gov/Archives/edgar/data/1841666/000178403124000003/apa-20231231.htm21/152During 2023,a total of approximately$377 million was spent on projects associated with proved undeveloped reserves.Aportion of APAs costs incurred each year relate to development projects that will

190、 convert undeveloped reserves to proveddeveloped reserves in future years.During 2023,the Company spent approximately$323 million on PUD reserve developmentactivity in the U.S.and$54 million in the international areas.As of December 31,2023,the Company had no material amounts ofproved undeveloped re

191、serves scheduled to be developed beyond five years from initial disclosure.Preparation of Oil and Gas Reserve InformationThe Companys reported reserves are reasonably certain estimates which,by their very nature,are subject to revision.Theseestimates are reviewed throughout the year and revised eith

192、er upward or downward,as warranted.APAs proved reserves are estimated at the property level and compiled for reporting purposes by a centralized group ofexperienced reservoir engineers that is independent of the operating groups.These engineers interact with engineering andgeoscience personnel in ea

193、ch of the Companys operating areas and with accounting and marketing employees to obtain thenecessary data for projecting future production,costs,net revenues,and ultimate recoverable reserves.All relevant data is compiledin a computer database application,to which only authorized personnel are give

194、n security access rights consistent with theirassigned job function.Reserves are reviewed internally with senior management and presented to APAs Board of Directors insummary form on a quarterly basis.Annually,each property is reviewed in detail by our corporate and operating asset engineers toensur

195、e forecasts of operating expenses,netback prices,production trends,and development timing are reasonable.APAs Executive Vice President of Development is the person primarily responsible for overseeing the preparation of theCompanys internal reserve estimates and for coordinating any reserves audits

196、conducted by a third-party engineering firm.He hasBachelor of Science and Master of Science degrees in Petroleum Engineering and over 30 years of experience in the energyindustry and energy sector of the banking industry.The Executive Vice President of Development reports directly to the CompanysChi

197、ef Executive Officer.The estimate of reserves disclosed in this Annual Report on Form 10-K is prepared by the Companys internal staff,and theCompany is responsible for the adequacy and accuracy of those estimates.The Company engages Ryder Scott Company,L.P.Petroleum Consultants(Ryder Scott)to conduc

198、t a reserves audit,which includes a review of the Companys processes and thereasonableness of the Companys estimates of proved hydrocarbon liquid and gas reserves.The Company selects the properties forreview by Ryder Scott based primarily on relative reserve value.The Company also considers other fa

199、ctors such as geographiclocation,new wells drilled during the year,and reserves volume.During 2023,the properties selected for all countries represented88 percent of the total future net cash flows discounted at 10 percent.These properties also accounted for 91 percent of the value ofthe Companys in

200、ternational proved reserves and 95 percent of the value of the Companys new wells drilled worldwide.Inaddition,all fields containing five percent or more of the Companys total proved reserves volume were included in Ryder Scottsreview.The review covered 83 percent of total proved reserves on a boe b

201、asis.The percentages of total estimated proved reserves values,calculated as future net cash flows discounted at 10 percent,andvolumes,on a boe basis,covered by Ryder Scotts reviews for the years 2023,2022,and 2021 were:202320222021Estimated proved reserves values88%83%83%Estimated proved reserves v

202、olumes:United States83%80%80%Egypt80%80%80%North Sea90%81%81%APA Worldwide83%80%80%The Company has filed Ryder Scotts independent report as an exhibit to this Annual Report on Form 10-K.According to Ryder Scotts opinion,based on their review,including the data,technical processes,and interpretations

203、presented by the Company,the overall procedures and methodologies utilized by the Company in determining the proved reservescomply with the current SEC regulations,and the overall proved reserves for the reviewed properties as estimated by the Companyare,in aggregate,reasonable within the establishe

204、d audit tolerance guidelines as set forth in the Society of Petroleum Engineersauditing standards.112025/1/17 23:42apa-20231231https:/www.sec.gov/Archives/edgar/data/1841666/000178403124000003/apa-20231231.htm22/152ALTUS MIDSTREAMIn November 2018,Apache Midstream LLC,one of the Companys wholly owned

205、 subsidiaries completed a transaction withALTM and its then wholly owned subsidiary Altus Midstream LP to create a pure-play,Permian Basin midstream C-corporationanchored by gathering,processing,and transmission assets at Alpine High.Pursuant to the agreement,the Companys subsidiarycontributed certa

206、in Alpine High midstream assets and options to acquire equity interests in five separate third-party pipelineprojects to Altus Midstream LP and/or its subsidiaries.In exchange for the assets,the Companys subsidiary received economicvoting and non-economic voting shares in ALTM and limited partner in

207、terests in Altus Midstream LP,representing an approximate79 percent ownership interest in the combined entities.As a result,APA fully consolidated the assets and liabilities of ALTM in itsconsolidated financial statements,with a corresponding noncontrolling interest reflected separately.Business Com

208、bination with BCPOn February 22,2022,ALTM closed a previously announced transaction to combine with privately owned BCP RaptorHoldco LP(BCP and,together with BCP Raptor Holdco GP,LLC,the Contributed Entities)in an all-stock transaction,pursuant tothe Contribution Agreement entered into by and among

209、ALTM,Altus Midstream LP,New BCP Raptor Holdco,LLC(theContributor),and BCP(the BCP Contribution Agreement).The combination created an integrated midstream company in the TexasDelaware Basin offering services for residue gas,NGLs,crude oil and water.Pursuant to the BCP Contribution Agreement,Contribut

210、or contributed all of the equity interests of the Contributed Entities(the Contributed Interests)to Altus Midstream LP,with each Contributed Entity becoming a wholly owned subsidiary of Altus Midstream LP(the BCP Business Combination).As consideration for the contribution of the Contributed Interest

211、s,ALTM issued 50 million shares of Class C Common Stock(and Altus Midstream LP issued a corresponding number of common units)to BCPs unitholders,which are principally fundsaffiliated with Blackstone and I Squared Capital.The transaction closed during the first quarter of 2022.Upon closing thetransac

212、tion,the combined entity was renamed Kinetik Holdings Inc.After the transaction closed,Apache Midstream LLC,a wholly owned subsidiary of APA,which owned approximately 79percent of the issued and outstanding shares of ALTM common stock prior to the BCP Business Combination,ownedapproximately 20 perce

213、nt of the issued and outstanding shares of Kinetik common stock.Upon closing the transaction,theCompany no longer consolidated the assets and liabilities of ALTM in its consolidated financial statements.Subsequent to the closeof the transaction,in March 2022,the Company sold four million of its Kine

214、tik Shares for$224 million,reducing the Companysownership in Kinetik to approximately 13 percent.In December 2023,the Company sold an additional 7.5 million of its Kinetik Shares for cash proceeds of$228 million.As ofDecember 31,2023,the Company owned 13.1 million Kinetik Shares,representing approxi

215、mately 9 percent of Kinetiksoutstanding common stock.MAJOR CUSTOMERSThe Company is exposed to credit risk in the event of nonpayment by counterparties,a significant portion of which areconcentrated in energy-related industries.The creditworthiness of customers and other counterparties is subject to

216、continuingreview,including the use of master netting agreements,where appropriate.During each of 2023 and 2022,sales to EGPCaccounted for approximately 15 percent of the Companys worldwide crude oil,natural gas,and NGLs revenues.During 2021,sales to EGPC and CFE International accounted for approxima

217、tely 14 percent and 10 percent,respectively,of the Companysworldwide crude oil,natural gas,and NGLs revenues.Management does not believe that the loss of any one of these customers would have a material adverse effect on the resultsof operations.122025/1/17 23:42apa-20231231https:/www.sec.gov/Archiv

218、es/edgar/data/1841666/000178403124000003/apa-20231231.htm23/152HUMAN CAPITAL MANAGEMENTHuman Capital and EmployeesAPA believes that its people are one of the Companys most important investments and its greatest asset.Successfulexecution of the Companys business strategies depends on its ability to a

219、ttract,develop,incentivize,and retain diverse,talented,qualified,and highly skilled employees at all levels of the organization.As such,the Company continues to focus on health andsafety,diversity and inclusion,total rewards,and community partnerships to ensure that being a part of the APA family is

220、 a positiveexperience for all.As of December 31,2023,the Company globally employed approximately 2,271 full-time equivalent employees in locationsacross the organization.EmployeesNorth America1,403 United Kingdom607 Egypt259 Suriname France2 Total employees2,271 Global WorkforceGlobal Leadership Rol

221、esBoard of DirectorsGender%of EmployeesGender%of EmployeesGender%of DirectorsF23%F20%F30%M77%M80%M70%Amongst the Companys U.S.workforce,37 percent self-report as non-white.U.S.EmployeesRace%of EmployeesAmerican Indian or Alaskan Native%Asian8%Black or African American6%Hispanic/Latino22%Native Hawai

222、ian or Other Pacific Islander%Two or More Races1%White63%The Company does not request racial diversity data from its workforce in countries outside of the U.S.where tracking thesemetrics is largely prohibited by law.132025/1/17 23:42apa-20231231https:/www.sec.gov/Archives/edgar/data/1841666/00017840

223、3124000003/apa-20231231.htm24/152Oversight and ManagementThe Management Development and Compensation(MD&C)Committee and/or the full Board of Directors receive regularreports on certain human capital matters,including the Companys diversity and inclusion programs and initiatives.The MD&CCommittee als

224、o oversees the Companys compensation programs,leadership development and succession planning strategies,andseeks continuous improvement in the diversity and inclusion practices used in developing and deploying these processes.Reportsand recommendations made to the Board of Directors and its committe

225、es are part of the framework that ensures APAs daily actionsand decisions are guided by its core values,including upholding the health and safety of the Companys team,stakeholders,andcommunities;investing in its workforce;ensuring environmental responsibility;seeking continuous improvement;and actin

226、gethically and with integrity.Diversity and InclusionAPA recognizes diversity and inclusion(D&I)as vital to its long-term success.The Company has dedicated resources todeveloping D&I programs and initiatives that foster an inclusive work environment where all employees are valued.The goal is tocreat

227、e a culture where all employees can feel a sense of belonging and can thrive.In 2023,APA strengthened its commitment by supporting its established programs and expanding employee engagementthrough the following key accomplishments:Increased the number of employee resource groups(ERGs)with the establ

228、ishment of the Apache Pan Asian Network(APAN),an ERG focused on Asian culture;Participated in D&I surveys,networks,and conferences to benchmark against the industry and increase knowledge onD&I best practices;Recruited at Historically Black Colleges&Universities(HBCU);Developed D&I trainings on miti

229、gating bias in hiring and performance assessment processes;Maintained global mentorship program to provide career development through networking with leaders;Completed internal annual pay equity analysis;Expanded employee benefits to support back-up childcare,mental health services,and family planni

230、ng;Launched a global employee recognition program to increase engagement,inclusion,and employee well-being;Increased focus on utilization of supplier diversity program;andContinued to support community outreach to underserved populations in the communities in which APA operates.TalentAPAs comprehens

231、ive talent strategy integrates recruitment and development initiatives,forming a foundation for continuedorganizational success.The Company is dedicated to attracting,cultivating,and retaining top-tier professionals while fostering anenvironment that encourages growth and innovation.The Companys rec

232、ruitment framework harnesses technology and data-driven insights to identify talent pools on a globalscale,while at the local level,the Company leverages the power of its people,including,looking to the Companys ERG membersfor recommendations and feedback during the candidate sourcing and interviewi

233、ng processes.Collaborations with educational institutions,including HBCUs,industry networks and professional organizations,such as thePosse Foundation,enable the Company to engage with emerging talent and build relationships with seasoned industryprofessionals.APA has an intern recruitment program t

234、hat provides invaluable learning experiences and helps cultivate a pipelineof future industry leaders.Additionally,the Companys recent engagement of the largest black women-owned,diversity-certifiedrecruiting firm specializing in STEM has the goal of amplifying the value and impact of the Companys r

235、ecruitment program.Thefirms expertise,dedicated focus on diversity,and vast network in the STEM fields will help expand the Companys talent pool andreinforce the Companys commitment to fostering a diverse and inclusive working environment.This collaboration not only alignswith the Companys corporate

236、 goals but also strengthens the Companys reputation as an organization dedicated to empoweringunderrepresented groups in STEM.The engagement is a significant stride forward that will enrich the Companys recruitmentinitiatives and further its commitment to diversity and excellence in the STEM discipl

237、ines.142025/1/17 23:42apa-20231231https:/www.sec.gov/Archives/edgar/data/1841666/000178403124000003/apa-20231231.htm25/152Beyond recruitment,the Company invests in a broad range of talent development programs for its employees.Theseinitiatives encompass continuous learning opportunities,skill enhanc

238、ement programs,mentorship frameworks,and leadershipdevelopment pathways.Tailored career progression opportunities empower the Companys employees to excel and innovate,preparing them for evolving challenges.The synergy between recruitment efforts and talent development initiatives helps the Company t

239、o not only attract top talentbut to also nurture their potential,enabling them to excel within a dynamic environment.This cohesive approach is designed toprovide a continuous influx of skilled individuals who contribute significantly to the Companys growth and maintain acompetitive edge,positioning

240、the Company for sustained success in an ever-evolving market landscape.Training and DevelopmentAt APA,effective employee development integrates both training and performance management programs.In 2023,theCompany continued to partner with local universities to provide business acumen courses for all

241、 employees.Classes were taughtin-person as well as offered virtually for the Companys global and remote workforce.Additionally,several in-person and virtualclasses on Oil&Gas 101 were rolled out to employees interested in understanding the basics of the industry.APAs PerformanceManagement program mo

242、ved into a more sustainable phase with a reinforcement on promoting an ongoing feedback culturebetween managers and employees.Supplemental development and training opportunities were offered during the year to support employees in their personaland professional development,including:Access to multip

243、le,third-party online and in-person trainings;Annual cybersecurity training focusing on keeping the Company and employees personal information secure;Required health,safety and environmental trainings offered to field and offshore employees on safe practices;Leadership and personal development coach

244、ing opportunities through a collaboration with leading human resourcesconsulting companies;Ongoing education for people leaders around the Companys leadership competencies and behaviors;andAnnual compliance,antitrust,bribery,corruption,and code of business conduct and ethics training required for al

245、lemployees and leaders.Additionally,the Company launched a company-wide initiative in 2023 focused on enhancing talent strategies and investingin employee development programs that enrich the overall employee experience while reinforcing the Companys organizationalobjectives.Total RewardsAPAs total

246、rewards approach is designed to attract,motivate,and retain top talent by providing a robust compensation andbenefits package that includes competitive base salary,industry-leading benefits and performance-driven incentives.To foster astronger sense of ownership and align the interests of employees

247、and shareholders,restricted stock units are provided to eligibleemployees under APAs broad-based compensation program.Furthermore,the Company offers comprehensive and locally relevantbenefits that cultivate a family-friendly work environment and focus on the overall wellness of the Companys employee

248、s.In theU.S.these include,among other benefits:Comprehensive health insurance coverage offered to employees working an average of 20 hours or more each week;401(k)plan with up to an 8 percent Company match;6 percent Company contributions to a money purchase retirement plan;Company-paid short-term di

249、sability that pays a percentage of base pay according to years of service;Parental leave for all new parents for birth and adoption;Fertility and family building benefits to support the various paths to parenthood;Elder care leave to temporarily care for or find permanent care for elder family membe

250、rs;152025/1/17 23:42apa-20231231https:/www.sec.gov/Archives/edgar/data/1841666/000178403124000003/apa-20231231.htm26/152Comprehensive mental health offering that includes access to mental health therapists or coaches,a learning platformthat offers on-demand and interactive courses on mental health t

251、opics,and a library of well-being and self-care resources;andWell-being program that encourages healthy habits and promotes physical,financial,social,and emotional well-beingthrough webinars and challenges throughout the year.Health and SafetyAPAs priority is the health and safety of its workforce.T

252、he Companys environmental,health,and safety and operationsfunctions partner to consistently reinforce its core values,standards,and operating practices as well as foster a safety culture thatempowers the Companys workforce to stop work if conditions or behaviors are deemed unsafe.APA strives to be i

253、ncident-freeacross its global operations every day,with the help of visible and engaged leadership,by setting clear expectations and makingsafety personal for all employees and contractors.Global Primary Workforce Safety MetricsTotal Recordable Incident Rate(TRIR)0.2227%below target of 0.30Days Away

254、,Restricted and Transferred Rate(DART)0.147%below target of 0.15Severe Incident Rate(SIR)0.00582%below target of 0.028Vehicle Incident Rate(VIR)0.6516%above target of 0.56(1)Total Recordable Incident Rate(TRIR):The rate of recordable injuries sustained by employees,contractors,or both that occur per

255、 200,000 hours worked.(2)Days Away,Restricted and Transferred Rate(DART):The rate of injuries sustained by employees,contractors,or both leading to missed workdays,restrictedwork activities,or transfers to another job,per 200,000 hours worked.(3)Severe Incident Rate(SIR):The rate of incidents result

256、ing in fatal injury,permanent or significant loss or impairment of a body part or organ function,or thatotherwise permanently change or disable individuals in their normal life activity,per 200,000 hours worked.(4)Vehicle Incident Rate(VIR):The rate of vehicle-related incidents per 1 million miles d

257、riven.Community PartnershipsAPA is committed to being socially and environmentally responsible in the communities where it operates.The CommunityPartnerships group oversees the Companys global strategic social investing and community engagement,including the stewardshipof key stakeholder relationshi

258、ps.APAs global giving strategy and philosophy is focused into three pillars:Community Well-being,EnvironmentalStewardship,and Access to Energy,through which the Company creates sustainable and positive impacts.Based on these pillars,APA is committed to addressing acute social needs within the local

259、communities where it operates;ensuring that it remains focusedon its long-standing legacy and commitment to environmental stewardship and conservation;and supporting underservedcommunities that lack access to reliable,affordable energy.Community Well-being:APA continues to partner with organizations

260、 within the communities in which it operates toimprove quality of life through access to education and essential medical supplies;development of innovative healthcaretechnologies and procedures;support for vulnerable populations,including women and children in need;response tonatural disasters;and s

261、upport for first responders.Environmental Stewardship:In 2023,the Companys environmental stewardship initiatives included grants of 206,000trees to 61 community partners through the Apache Corporation Tree Grant Program;continued partnership with theTexas Parks and Wildlife Foundation to provide sus

262、tainable funding for the restoration of Balmorhea State Park;andmulti-year support of the Pecos Watershed Conservation Initiative,an alliance of seven energy companies,in partnershipwith the National Fish and Wildlife Foundation,to restore and protect natural grasslands and habitats within the great

263、erTrans-Pecos Region.Access to Energy:In 2023,the Company installed generators in the villages of Drietabbetje and Asidonhopo in theSurinamese Amazon,in partnership with the Surinamese Ministry of Natural Resources.The generators not only providemore reliable electricity for the two communities,but

264、they will also help provide better quality health care,increasedlocal trade,more educational opportunities and preserved Indigenous traditions.APA also provides employees with volunteer service opportunities in collaboration with its Community Partnershipsprogram.The Company seeks meaningful volunte

265、er opportunities that instill a sense of pride,ownership,and accomplishment(1)(2)(3)(4)162025/1/17 23:42apa-20231231https:/www.sec.gov/Archives/edgar/data/1841666/000178403124000003/apa-20231231.htm27/152for employees in their communities.As community needs change and stakeholder engagement continue

266、s,APA continues to adjustits charitable giving program.OFFICESThe Companys principal executive offices are located at One Post Oak Central,2000 Post Oak Boulevard,Suite 100,Houston,Texas 77056-4400.As of year-end 2023,the Company maintained offices in Midland,Texas;Houston,Texas;Cairo,Egypt;and Aber

267、deen,Scotland.The Companys primary office space is leased.The current lease on the Companys principalexecutive offices runs through December 31,2024.The Company plans to move its principal executive offices in 2024 to OneBriarlake Plaza in Houston,Texas,under an existing lease that expires on Decemb

268、er 31,2038,subject to the lessees option toextend the term by up to 20 years.For information regarding the Companys obligations under its office leases,please see Part II,Item 7Managements Discussion and Analysis of Financial Condition and Results of OperationsCapital Resources andLiquidityContractu

269、al Obligations and Note 11Commitments and Contingencies in the Notes to Consolidated FinancialStatements set forth in Part IV,Item 15 of this Annual Report on Form 10-K.TITLE TO INTERESTSAs is customary in the oil and gas industry,a preliminary review of title records,which may include opinions or r

270、eports ofappropriate professionals or counsel,is made at the time the Company acquires properties.The Company believes that its title to allof the various interests set forth above is satisfactory and consistent with the standards generally accepted in the oil and gasindustry,subject only to immater

271、ial exceptions that do not detract substantially from the value of the interests or materiallyinterfere with their use in the Companys operations.The interests owned by the Company may be subject to one or more royalty,overriding royalty,or other outstanding interests(including disputes related to s

272、uch interests)customary in the industry.Theinterests may additionally be subject to obligations or duties under applicable laws,ordinances,rules,regulations,and orders ofarbitral or governmental authorities.In addition,the interests may be subject to burdens such as production payments,net profitsin

273、terests,liens incident to operating agreements and current taxes,development obligations under oil and gas leases,and otherencumbrances,easements,and restrictions,none of which detract substantially from the value of the interests or materially interferewith their use in the Companys operations.ADDI

274、TIONAL INFORMATION ABOUT THE COMPANYResponse Plans and Available ResourcesThe Companys subsidiaries maintain oil spill response plans(the Plans)for their respective offshore operations in the Gulfof Mexico,the North Sea,and Suriname,which ensure rapid and effective responses to spill events that may

275、 occur on such entitiesoperated properties.Emergency preparedness drills are conducted to measure and maintain the effectiveness of the Plans.The Companys subsidiary,Apache,is a member of Oil Spill Response Limited(OSRL),a large international oil spillresponse cooperative,which entitles any affiliat

276、ed entity worldwide to access OSRLs services.OSRL maintains aircraft availablefor global dispersant application and has a number of active recovery boom systems that can be used for offshore,nearshore,orshoreline responses.In addition to the services and equipment provided to all members of OSRL,the

277、 Company maintainsmembership to supplementary services from OSRL,including the U.K.Continental Shelf(UKCS)Aerial Surveillance,OSPRAGCapping Stack,and Dispersant Stockpile,providing equipment and services specifically tailored for an emergency response in theNorth Sea.In the event of a spill in the G

278、ulf of Mexico,Clean Gulf Associates(CGA)is the primary oil spill response associationavailable to Apache.Apache is a member of CGA,a not-for-profit association of producing and pipeline companies operating inthe Gulf of Mexico.CGA was created to provide a means of effectively staging response equipm

279、ent and providing immediate spillresponse for its member companies operations in the Gulf of Mexico.CGA equipment includes skimming vessels,barges,boom,and dispersants.Additionally,the Company has contracted with Wild Well Control Company for contingency planning for and response touncontrolled subs

280、ea well events and other drilling activities.The Company utilizes a detailed Source Control Emergency ResponsePlan(SCERP)for offshore response preparedness.The SCERP has been designed to ensure that the goals of the Companys sourcecontrol emergency preparedness efforts will be met in the unlikely ev

281、ent of an actual response to an uncontrolled well event.Thisincludes the use of subsea dispersant systems and field deployment of one of Wild Well Controls containment system cappingstacks.172025/1/17 23:42apa-20231231https:/www.sec.gov/Archives/edgar/data/1841666/000178403124000003/apa-20231231.htm

282、28/152Competitive ConditionsThe oil and gas industry is highly competitive in the exploration for and acquisitions of reserves,the acquisition of oil andgas leases,equipment and personnel required to find and produce reserves,and the gathering and marketing of oil,gas,and NGLs.The Companys competito

283、rs include national oil companies,major integrated oil and gas companies,other independent oil and gascompanies,and participants in other industries supplying energy and fuel to industrial,commercial,and individual consumers.Certain of the Companys competitors may possess financial or other resource

284、s substantially larger than the Companypossesses or have established strategic long-term positions and maintain strong governmental relationships in countries in whichthe Company may seek new entry.As a consequence,the Company may be at a competitive disadvantage in bidding for leases ordrilling rig

285、hts.However,the Company believes its diversified portfolio of core assets,which comprises large acreage positions and well-established production bases across three geographic areas,its balanced production mix between oil and gas,its management andincentive systems,and its experienced personnel give

286、 it a strong competitive position relative to many of the Companyscompetitors who do not possess similar geographic and production diversity.The Companys global position provides a largeinventory of geologic and geographic opportunities in the geographic areas in which it has producing operations to

287、 which it canreallocate capital investments in response to changes in commodity prices,local business environments,and markets.This alsoreduces the risk that the Company will be materially impacted by an event in a specific area or country.Environmental ComplianceAs an owner or lessee and operator o

288、f oil and gas properties and facilities,the Company is subject to numerous federal,state,local,and foreign laws and regulations relating to discharge of materials into,and protection of,the environment.These laws andregulations may,among other things,impose liability on the lessee under an oil and g

289、as lease for the cost of pollution clean-upresulting from operations,subject the lessee to liability for pollution damages and require suspension or cessation of operations inaffected areas.Although environmental requirements have a substantial impact upon the energy industry as a whole,the Companyd

290、oes not believe that these requirements affect it differently,to any material degree,than other companies in the oil and gasindustry.The Company has made and will continue to make expenditures in its efforts to comply with these requirements,which theCompany believes are necessary business costs in

291、the oil and gas industry.The Company has established policies for continuingcompliance with environmental laws and regulations,including regulations applicable to its operations in all countries in which itdoes business.The Company has established operating procedures and training programs designed

292、to limit the environmentalimpact of its field facilities and identify and comply with changes in existing laws and regulations.The costs incurred under thesepolicies and procedures are inextricably connected to normal operating expenses such that the Company is unable to separateexpenses related to

293、environmental matters;however,the Company does not believe expenses related to training and compliancewith regulations and laws that have been adopted or enacted to regulate the discharge of materials into the environment will have amaterial impact on its capital expenditures,earnings,or competitive

294、 position.182025/1/17 23:42apa-20231231https:/www.sec.gov/Archives/edgar/data/1841666/000178403124000003/apa-20231231.htm29/152ITEM 1A.RISK FACTORSThe Companys business activities and the value of its securities are subject to significant hazards and risks,including thosedescribed below.If any of su

295、ch events should occur,the Companys business,financial condition,liquidity,and/or results ofoperations could be materially harmed,and holders and purchasers of APAs securities could lose part or all of their investments.Additional risks and uncertainties not presently known to the Company or that th

296、e Company currently considers immaterial mayalso adversely affect the Company.RISKS RELATED TO PRICING,DEMAND,AND PRODUCTION FOR CRUDE OIL,NATURAL GAS,AND NGLsCrude oil,natural gas,and NGL prices and their volatility could adversely affect the Companys operating results and theprice of APAs common s

297、tock.The Companys revenues,operating results,future rate of growth,and carrying value of its oil and gas properties dependhighly upon the prices it receives for its sales of crude oil,natural gas,and NGL products.Historically,the markets for thesecommodities have been volatile and are likely to cont

298、inue to be volatile in the future.For example,the NYMEX daily settlementprice for the prompt month oil contract in 2023 ranged from a high of$93.67 per barrel to a low of$66.61 per barrel,and theNYMEX daily settlement price for the prompt month natural gas contract in 2023 ranged from a high of$3.78

299、 per MMBtu to a lowof$1.74 per MMBtu.The market prices for crude oil,natural gas,and NGLs depend on factors beyond the Companys control.These factors include demand,which fluctuates with changes in market and economic conditions,and other factors,including:worldwide and domestic supplies and/or inve

300、ntories of crude oil,natural gas,and NGLs and the availability of relatedpipeline,transportation,import/export,and refining capacity and infrastructure;actions taken by foreign oil and gas producing nations,including the Organization of the Petroleum Exporting Countries(OPEC)and non-OPEC members tha

301、t participate in OPEC initiatives(OPEC+);political conditions and events in oil and gas producing regions,including instabilities,changes in governments,or armedconflicts,such as the Russian war in Ukraine and the armed conflict in Israel and Gaza;the price,competitiveness,decision to use,and availa

302、bility of alternative fuels and energy sources,including coal,biofuels,and renewables;increased competitiveness of,and demand for,alternative energy sources;technological advances affecting energy supply and energy consumption,including those that alter fuel choices;the availability of pipeline capa

303、city and infrastructure;the availability of crude oil transportation and refining capacity;weather conditions;the impact of political pressure and the influence of environmental groups,investors,and other stakeholders on decisionsand policies related to the oil and gas industry,including with respec

304、t to environmental,social,and governance matters;domestic and foreign governmental regulations and taxes,including changes or initiatives to address the impacts of globalclimate change,hydraulic fracturing,methane emissions,flaring,or water disposal;andthe overall economic environment,including rate

305、s of growth and increasing inflationary pressure.Low prices have previously adversely affected and could from time to time in the future adversely affect the Companysrevenues,operating income,cash flow,and proved reserves,and a prolonged period of low prices could have a material adverseimpact on th

306、e Companys results of operations and cash flows and limit its ability to fund capital expenditures.Without the abilityto fund capital expenditures,the Company would be unable to replace reserves and production.Sustained low prices of crude oil,natural gas,and NGLs could also further adversely impact

307、 the Companys business,including by weakening the Companysfinancial condition and reducing its liquidity,limiting the Companys ability to fund planned capital expenditures and operations,causing the Company to delay or postpone some of its capital projects or reallocate capital to different projects

308、 or regions,limitingthe Companys access to sources of capital,such as equity and long-term debt,or reducing the carrying value of the Companys oiland gas properties,resulting in additional non-cash impairments.192025/1/17 23:42apa-20231231https:/www.sec.gov/Archives/edgar/data/1841666/00017840312400

309、0003/apa-20231231.htm30/152The Companys ability to sell crude oil,natural gas,or NGLs,receive market prices for these commodities,and/or meetvolume commitments under transportation services agreements may be adversely affected by pipeline and gathering systemcapacity constraints,the inability to pro

310、cure and resell volumes economically,and various transportation interruptions.A portion of the Companys crude oil,natural gas,and NGL production in any region may be interrupted,limited,or shut infrom time to time for numerous reasons,including as a result of weather conditions,accidents,loss of pip

311、eline or gathering systemaccess,field labor issues or strikes,cyberattacks or terrorist events,or capital constraints that limit the ability of third parties toconstruct gathering systems,processing facilities,or interstate pipelines to transport the Companys production.Additionally,theCompany may v

312、oluntarily curtail production in response to market conditions.If a substantial amount of the Companys productionis interrupted or curtailed at the same time,it could temporarily adversely affect the Companys cash flows.Further,if theCompany is unable to procure and resell third-party volumes at or

313、above a net price that covers the cost of transportation,theCompanys cash flows could be adversely affected.The Company has previously not realized,and may in the future not realize,an adequate return on wells that it drills.Drilling for oil and gas involves numerous risks,including that the Company

314、 may not encounter commercially productive oilor gas reservoirs or may not recover all or any portion of its investment in the wells it drills.Management has previouslydetermined,and may in the future determine,that future drilling or development activities will not,or are unlikely to,occur for awel

315、l or reservoir,based on drilling results,current or future estimated commodity prices or demand for oil,natural gas,and NGLs,or other information.The costs of drilling,completing,and operating wells are often uncertain,and drilling operations are subjectto a variety of risks,including unexpected dri

316、lling conditions(such as pressure or formation irregularities),equipment failures oraccidents,catastrophic events,marine risks,adverse weather conditions,and increases in the cost of or shortages or delays in theavailability of drilling rigs,equipment,and labor.In addition,exploratory drilling invol

317、ves greater risks of dry holes or failure tofind commercial quantities of hydrocarbons.Any such events could have an adverse effect on the Companys future results ofoperations and financial condition.Exploration costs and dry hole expenses incurred by the Company during the reporting periodare furth

318、er discussed in this Annual Report on Form 10-K and reflected in the consolidated financial statements included herein.The Companys commodity price risk management and trading activities may prevent it from benefiting fully from priceincreases and may expose it to other risks.To the extent that the

319、Company engages in price risk management activities to protect itself from commodity price declines,the Company may be prevented from realizing the benefits of price increases.The Companys hedging arrangements may expose itto the risk of financial loss,including when production falls short of the he

320、dged volumes,price-basis differentials widen,a hedgingcounterparty defaults,or an unexpected event materially impacts commodity prices.Global pandemics have previously,may continue to,and may in the future adversely impact the Companys business,financial condition,and results of operations;the globa

321、l economy;the demand for and prices of oil,natural gas,and NGLs;and the performance of the Companys workforce.Global pandemics and the actions taken by third parties,including,but not limited to,governmental authorities,businesses,and consumers,in response to such pandemics,including the COVID-19 pa

322、ndemic,have previously adversely impacted and mayfrom time to time in the future adversely impact the global economy,resulting in significant volatility in the global financialmarkets,and the demand for,and the prices of,oil,natural gas,and NGLs,which may materially adversely affect the Companysbusi

323、ness,financial condition,cash flows,and results of operations.Additionally,the Companys operations rely on its workforcehaving access to its wells,platforms,structures,offices,and facilities.If a significant portion of the Companys workforce cannoteffectively perform their responsibilities,whether r

324、esulting from a lack of physical or virtual access,quarantines,illnesses,governmental actions or restrictions(including vaccine mandates and the reactions thereto),or other restrictions or adverse impactsresulting from a pandemic,the Companys business,financial condition,cash flows,and results of op

325、erations may be materiallyadversely affected.RISKS RELATED TO OPERATIONS AND DEVELOPMENT PROJECTSThe Companys operations involve a high degree of operational risk,particularly risk of personal injury,damage to or loss ofproperty,and environmental accidents.The Companys operations are subject to haza

326、rds and risks inherent in the drilling,production,and transportation of crudeoil,natural gas,and NGLs,including well blowouts,explosions,fires,cratering,pipeline or other facility ruptures and spills,adverse weather conditions,including those impacting the Companys offshore operating areas,surface s

327、pillage and202025/1/17 23:42apa-20231231https:/www.sec.gov/Archives/edgar/data/1841666/000178403124000003/apa-20231231.htm31/1522025/1/17 23:42apa-20231231https:/www.sec.gov/Archives/edgar/data/1841666/000178403124000003/apa-20231231.htm32/152ground water contamination,and failure or loss of equipme

328、nt.These events,including ineffective containment of such events,could result in property damages,personal injury,environmental pollution,and other damages for which the Company could beliable.If a significant amount of the Companys production is interrupted,containment efforts prove to be ineffecti

329、ve,or litigationarises as the result of a catastrophic occurrence,the Companys cash flows and,in turn,its results of operations could be materiallyand adversely affected.Weather and climate may have a significant adverse impact on the Companys revenues and production.Demand for oil and natural gas a

330、re,to a significant degree,dependent on weather and climate,which impact the price theCompany receives for the commodities it produces.In addition,the Companys exploration,development,and production activitiesand equipment have been and can be adversely affected by severe weather,such as freezing te

331、mperatures,hurricanes in the Gulf ofMexico,or major storms in the North Sea,each of which have previously caused and may cause a loss of production fromtemporary cessation of activity or lost or damaged equipment.The Companys planning for normal climatic variation,insuranceprograms,and emergency rec

332、overy plans may inadequately mitigate the effects of such weather conditions,and not all such effectscan be predicted,eliminated,or insured against.The Companys insurance policies do not cover all of the risks the Company faces,which could result in significant financialexposure.Exploration for and

333、production of crude oil,natural gas,and NGLs involves hazards,which can result in damage to ordestruction of wells or production facilities,injury to persons,loss of life,or damage to property or the environment.TheCompanys international operations are also subject to political and economic risks.The insurance coverage that the Companymaintains against certain losses or liabilities arising from i