10-Q 1 apa-20240331.htm 10-Q apa-20240331
false2024Q10001841666--12-3133.33http://fasb.org/us-gaap/2023#OtherAssetsCurrenthttp://fasb.org/us-gaap/2023#OtherAssetsCurrenthttp://fasb.org/us-gaap/2023#OtherLiabilitiesCurrenthttp://fasb.org/us-gaap/2023#OtherLiabilitiesCurrent00018416662024-01-012024-03-3100018416662024-04-30xbrli:shares0001841666apa:OilAndGasExcludingPurchasedMember2024-01-012024-03-31iso4217:USD0001841666apa:OilAndGasExcludingPurchasedMember2023-01-012023-03-310001841666us-gaap:OilAndGasPurchasedMember2024-01-012024-03-310001841666us-gaap:OilAndGasPurchasedMember2023-01-012023-03-310001841666us-gaap:OilAndGasMember2024-01-012024-03-310001841666us-gaap:OilAndGasMember2023-01-012023-03-3100018416662023-01-012023-03-310001841666apa:NoncontrollingInterestEgyptMember2024-01-012024-03-310001841666apa:NoncontrollingInterestEgyptMember2023-01-012023-03-31iso4217:USDxbrli:shares00018416662023-12-3100018416662022-12-3100018416662024-03-3100018416662023-03-310001841666apa:NoncontrollingInterestEgyptMember2024-03-310001841666apa:NoncontrollingInterestEgyptMember2023-12-310001841666us-gaap:CommonStockMember2022-12-310001841666us-gaap:AdditionalPaidInCapitalMember2022-12-310001841666us-gaap:RetainedEarningsMember2022-12-310001841666us-gaap:TreasuryStockCommonMember2022-12-310001841666us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001841666us-gaap:ParentMember2022-12-310001841666us-gaap:NoncontrollingInterestMember2022-12-310001841666us-gaap:RetainedEarningsMember2023-01-012023-03-310001841666us-gaap:ParentMember2023-01-012023-03-310001841666us-gaap:NoncontrollingInterestMemberapa:NoncontrollingInterestEgyptMember2023-01-012023-03-310001841666us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310001841666us-gaap:TreasuryStockCommonMember2023-01-012023-03-310001841666us-gaap:CommonStockMember2023-01-012023-03-310001841666us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310001841666us-gaap:CommonStockMember2023-03-310001841666us-gaap:AdditionalPaidInCapitalMember2023-03-310001841666us-gaap:RetainedEarningsMember2023-03-310001841666us-gaap:TreasuryStockCommonMember2023-03-310001841666us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310001841666us-gaap:ParentMember2023-03-310001841666us-gaap:NoncontrollingInterestMember2023-03-310001841666us-gaap:CommonStockMember2023-12-310001841666us-gaap:AdditionalPaidInCapitalMember2023-12-310001841666us-gaap:RetainedEarningsMember2023-12-310001841666us-gaap:TreasuryStockCommonMember2023-12-310001841666us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310001841666us-gaap:ParentMember2023-12-310001841666us-gaap:NoncontrollingInterestMember2023-12-310001841666us-gaap:RetainedEarningsMember2024-01-012024-03-310001841666us-gaap:ParentMember2024-01-012024-03-310001841666us-gaap:NoncontrollingInterestMemberapa:NoncontrollingInterestEgyptMember2024-01-012024-03-310001841666us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-310001841666us-gaap:TreasuryStockCommonMember2024-01-012024-03-310001841666us-gaap:CommonStockMember2024-03-310001841666us-gaap:AdditionalPaidInCapitalMember2024-03-310001841666us-gaap:RetainedEarningsMember2024-03-310001841666us-gaap:TreasuryStockCommonMember2024-03-310001841666us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310001841666us-gaap:ParentMember2024-03-310001841666us-gaap:NoncontrollingInterestMember2024-03-310001841666apa:SinopecMemberapa:ApacheEgyptMember2024-03-31xbrli:pure0001841666apa:CallonPetroleumCompanyMemberus-gaap:SubsequentEventMember2024-04-012024-04-010001841666apa:KinetikMember2024-03-182024-03-180001841666apa:NonCoreAssetsAndLeaseholdMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2024-01-012024-03-310001841666apa:PermianRegionMember2023-01-012023-03-310001841666apa:NonCoreAssetsAndLeaseholdMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2023-01-012023-03-31apa:counterparty0001841666srt:NaturalGasReservesMemberapa:AprilToJune2024Memberapa:BasisSwapPurchasedMemberapa:NymexHenryHubWahaMember2024-01-012024-03-31utr:MMBTU0001841666srt:NaturalGasReservesMemberapa:AprilToJune2024Memberapa:BasisSwapPurchasedMemberapa:NymexHenryHubWahaMember2024-03-31iso4217:USDutr:MMBTU0001841666apa:NymexHenryHubHSCMembersrt:NaturalGasReservesMemberapa:AprilToJune2024Memberapa:BasisSwapSoldMember2024-01-012024-03-310001841666apa:NymexHenryHubHSCMembersrt:NaturalGasReservesMemberapa:AprilToJune2024Memberapa:BasisSwapSoldMember2024-03-310001841666us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMember2024-03-310001841666us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel2Member2024-03-310001841666us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel3Member2024-03-310001841666us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMember2024-03-310001841666us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMember2023-12-310001841666us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel2Member2023-12-310001841666us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel3Member2023-12-310001841666us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMember2023-12-310001841666us-gaap:CommodityContractMember2024-01-012024-03-310001841666us-gaap:CommodityContractMember2023-01-012023-03-310001841666apa:KinetikMember2023-12-310001841666apa:KinetikMember2024-01-012024-03-310001841666apa:KinetikMember2023-01-012023-03-310001841666apa:OilAndGasExcludingPurchasedMemberapa:KinetikMember2024-01-012024-03-310001841666apa:OilAndGasExcludingPurchasedMemberapa:KinetikMember2023-01-012023-03-310001841666apa:KinetikMemberus-gaap:OilAndGasPurchasedMember2024-01-012024-03-310001841666apa:KinetikMemberus-gaap:OilAndGasPurchasedMember2023-01-012023-03-310001841666apa:KinetikMember2024-01-012024-03-310001841666apa:KinetikMember2023-01-012023-03-310001841666apa:NotesAndDebenturesMember2024-03-310001841666apa:NotesAndDebenturesMember2023-12-310001841666apa:CommercialPaperAndSyndicatedCreditFacilitiesMember2024-03-310001841666apa:CommercialPaperAndSyndicatedCreditFacilitiesMember2023-12-310001841666us-gaap:SeniorNotesMemberapa:OpenMarketRepurchaseMember2023-03-310001841666us-gaap:SeniorNotesMemberapa:OpenMarketRepurchaseMember2023-01-012023-03-310001841666us-gaap:UnsecuredDebtMemberapa:SyndicatedCreditFacilityMember2022-04-29apa:credit_agreement0001841666apa:USDAgreementMemberus-gaap:LineOfCreditMember2022-04-292022-04-290001841666apa:USDAgreementMemberus-gaap:LineOfCreditMember2022-04-290001841666apa:USDAgreementMemberus-gaap:LetterOfCreditMemberus-gaap:LineOfCreditMember2022-04-29apa:option0001841666apa:GBPAgreementMemberus-gaap:LineOfCreditMember2022-04-292022-04-290001841666apa:GBPAgreementMemberus-gaap:LineOfCreditMember2022-04-29iso4217:GBP0001841666apa:USDAgreementMemberapa:ApacheCorpMemberus-gaap:LineOfCreditMember2022-04-290001841666apa:FormerFacilityMemberus-gaap:RevolvingCreditFacilityMember2022-04-292022-04-290001841666apa:USDAgreementMemberus-gaap:LineOfCreditMember2024-03-310001841666apa:GBPAgreementMemberus-gaap:LetterOfCreditMemberus-gaap:LineOfCreditMember2024-03-310001841666apa:USDAgreementMemberus-gaap:LetterOfCreditMemberus-gaap:LineOfCreditMember2024-03-310001841666apa:USDAgreementMemberus-gaap:LineOfCreditMember2023-12-310001841666apa:GBPAgreementMemberus-gaap:LetterOfCreditMemberus-gaap:LineOfCreditMember2023-12-310001841666apa:CreditFacilityApacheMemberus-gaap:LineOfCreditMember2024-03-310001841666apa:CreditFacilityApacheMember2024-03-310001841666apa:CreditFacilityApacheMember2023-12-310001841666us-gaap:CommercialPaperMember2023-12-310001841666us-gaap:CommercialPaperMember2023-12-012023-12-310001841666us-gaap:CommercialPaperMember2024-03-310001841666us-gaap:UnsecuredDebtMemberapa:DelayedDrawnTermLoanMember2024-01-300001841666us-gaap:UnsecuredDebtMemberapa:DelayedDrawnTermLoanMember2024-01-302024-01-300001841666us-gaap:UnsecuredDebtMemberapa:TermLoanCreditAgreementMemberus-gaap:SubsequentEventMember2024-04-010001841666apa:DelayedDrawnTermLoanMemberus-gaap:UnsecuredDebtMemberus-gaap:SubsequentEventMember2024-04-010001841666us-gaap:UnsecuredDebtMemberapa:DelayedDrawnTermLoanThreeYearTrancheLoansMemberus-gaap:SubsequentEventMember2024-04-010001841666us-gaap:UnsecuredDebtMemberapa:DelayedDrawnTermLoanThreeYearTrancheLoansMemberus-gaap:SubsequentEventMember2024-04-012024-04-010001841666apa:DelayedDrawnTermLoan364DayTrancheLoansMemberus-gaap:UnsecuredDebtMemberus-gaap:SubsequentEventMember2024-04-010001841666apa:DelayedDrawnTermLoan364DayTrancheLoansMemberus-gaap:UnsecuredDebtMemberus-gaap:SubsequentEventMember2024-04-012024-04-010001841666apa:CallonPetroleumCompanyMemberapa:A6.375SeniorNotesDue2026Memberus-gaap:SeniorNotesMemberus-gaap:SubsequentEventMember2024-04-010001841666apa:CallonPetroleumCompanyMemberapa:A8.00SeniorNotesDue2028Memberus-gaap:SeniorNotesMemberus-gaap:SubsequentEventMember2024-04-010001841666apa:CallonPetroleumCompanyMemberus-gaap:SeniorNotesMemberapa:A7.500SeniorNotesDue2030Memberus-gaap:SubsequentEventMember2024-04-010001841666apa:Callons2028NotesAndCallons2030NotesMemberus-gaap:SeniorNotesMemberus-gaap:SubsequentEventMember2024-04-010001841666apa:Callons2028NotesAndCallons2030NotesMemberus-gaap:UnsecuredDebtMemberus-gaap:SubsequentEventMember2024-04-010001841666us-gaap:UnsecuredDebtMemberapa:A6.375SeniorNotesDue2026Memberus-gaap:SubsequentEventMember2024-04-010001841666us-gaap:UnsecuredDebtMemberapa:A6.375SeniorNotesDue2026Memberus-gaap:SubsequentEventMember2024-04-012024-04-010001841666us-gaap:UnsecuredDebtMemberapa:CallonCreditAgreementMemberus-gaap:SubsequentEventMember2024-04-012024-04-010001841666apa:CallonPetroleumCompanyMemberapa:A8.00SeniorNotesDue2028Memberus-gaap:SeniorNotesMemberus-gaap:SubsequentEventMember2024-04-260001841666apa:CallonPetroleumCompanyMemberapa:A8.00SeniorNotesDue2028Memberus-gaap:SeniorNotesMemberus-gaap:SubsequentEventMember2024-04-262024-04-260001841666apa:CallonPetroleumCompanyMemberus-gaap:SeniorNotesMemberapa:A7.500SeniorNotesDue2030Memberus-gaap:SubsequentEventMember2024-04-260001841666apa:CallonPetroleumCompanyMemberus-gaap:SeniorNotesMemberapa:A7.500SeniorNotesDue2030Memberus-gaap:SubsequentEventMember2024-04-262024-04-2600018416662014-03-120001841666apa:LouisianaRestorationCoastalZoneLawsuitsMember2024-03-31apa:lawsuit0001841666apa:ApolloExplorationLawsuitMember2016-03-212016-03-210001841666srt:MinimumMemberapa:ApolloExplorationLawsuitMember2016-03-202016-03-200001841666apa:AustralianOperationsDivestitureDisputeMemberapa:ApacheAustraliaOperationMember2017-04-30iso4217:AUD0001841666apa:AustralianOperationsDivestitureDisputeMemberapa:ApacheAustraliaOperationMember2017-12-310001841666apa:CaliforniaLitigationMember2017-07-172017-07-17apa:actionapa:defendant0001841666apa:CaliforniaLitigationMember2017-12-202017-12-200001841666apa:DelawareLitigationMember2020-09-102020-09-100001841666apa:GulfOfMexicoShelfOperationsAndPropertiesMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2024-03-31apa:bond00018416662022-04-05apa:letter00018416662023-06-21apa:surety0001841666srt:MinimumMember2024-03-310001841666srt:MinimumMember2023-12-310001841666apa:StockOptionsAndOtherMember2024-01-012024-03-310001841666apa:StockOptionsAndOtherMember2023-01-012023-03-3100018416662021-10-012021-12-3100018416662022-07-012022-09-30apa:segment0001841666apa:OilAndGasExcludingPurchasedMemberus-gaap:OperatingSegmentsMembersrt:OilReservesMemberapa:SegmentUnitedStatesMember2024-01-012024-03-310001841666apa:OilAndGasExcludingPurchasedMemberus-gaap:OperatingSegmentsMemberapa:SegmentEgyptMembersrt:OilReservesMember2024-01-012024-03-310001841666apa:OilAndGasExcludingPurchasedMemberapa:SegmentNorthSeaMemberus-gaap:OperatingSegmentsMembersrt:OilReservesMember2024-01-012024-03-310001841666apa:OilAndGasExcludingPurchasedMemberus-gaap:IntersegmentEliminationMembersrt:OilReservesMember2024-01-012024-03-310001841666apa:OilAndGasExcludingPurchasedMembersrt:OilReservesMember2024-01-012024-03-310001841666apa:OilAndGasExcludingPurchasedMembersrt:NaturalGasReservesMemberus-gaap:OperatingSegmentsMemberapa:SegmentUnitedStatesMember2024-01-012024-03-310001841666apa:OilAndGasExcludingPurchasedMembersrt:NaturalGasReservesMemberus-gaap:OperatingSegmentsMemberapa:SegmentEgyptMember2024-01-012024-03-310001841666apa:OilAndGasExcludingPurchasedMembersrt:NaturalGasReservesMemberapa:SegmentNorthSeaMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310001841666apa:OilAndGasExcludingPurchasedMembersrt:NaturalGasReservesMemberus-gaap:IntersegmentEliminationMember2024-01-012024-03-310001841666apa:OilAndGasExcludingPurchasedMembersrt:NaturalGasReservesMember2024-01-012024-03-310001841666apa:OilAndGasExcludingPurchasedMemberus-gaap:OperatingSegmentsMembersrt:NaturalGasLiquidsReservesMemberapa:SegmentUnitedStatesMember2024-01-012024-03-310001841666apa:OilAndGasExcludingPurchasedMemberus-gaap:OperatingSegmentsMemberapa:SegmentEgyptMembersrt:NaturalGasLiquidsReservesMember2024-01-012024-03-310001841666apa:OilAndGasExcludingPurchasedMemberapa:SegmentNorthSeaMemberus-gaap:OperatingSegmentsMembersrt:NaturalGasLiquidsReservesMember2024-01-012024-03-310001841666apa:OilAndGasExcludingPurchasedMemberus-gaap:IntersegmentEliminationMembersrt:NaturalGasLiquidsReservesMember2024-01-012024-03-310001841666apa:OilAndGasExcludingPurchasedMembersrt:NaturalGasLiquidsReservesMember2024-01-012024-03-310001841666apa:OilAndGasExcludingPurchasedMemberus-gaap:OperatingSegmentsMemberapa:SegmentUnitedStatesMember2024-01-012024-03-310001841666apa:OilAndGasExcludingPurchasedMemberus-gaap:OperatingSegmentsMemberapa:SegmentEgyptMember2024-01-012024-03-310001841666apa:OilAndGasExcludingPurchasedMemberapa:SegmentNorthSeaMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310001841666apa:OilAndGasExcludingPurchasedMemberus-gaap:IntersegmentEliminationMember2024-01-012024-03-310001841666us-gaap:OperatingSegmentsMemberapa:SegmentUnitedStatesMemberus-gaap:OilAndGasPurchasedMember2024-01-012024-03-310001841666us-gaap:OperatingSegmentsMemberapa:SegmentEgyptMemberus-gaap:OilAndGasPurchasedMember2024-01-012024-03-310001841666apa:SegmentNorthSeaMemberus-gaap:OperatingSegmentsMemberus-gaap:OilAndGasPurchasedMember2024-01-012024-03-310001841666us-gaap:IntersegmentEliminationMemberus-gaap:OilAndGasPurchasedMember2024-01-012024-03-310001841666us-gaap:OperatingSegmentsMemberapa:SegmentUnitedStatesMemberus-gaap:OilAndGasMember2024-01-012024-03-310001841666us-gaap:OperatingSegmentsMemberapa:SegmentEgyptMemberus-gaap:OilAndGasMember2024-01-012024-03-310001841666apa:SegmentNorthSeaMemberus-gaap:OperatingSegmentsMemberus-gaap:OilAndGasMember2024-01-012024-03-310001841666us-gaap:IntersegmentEliminationMemberus-gaap:OilAndGasMember2024-01-012024-03-310001841666us-gaap:OperatingSegmentsMemberapa:SegmentUnitedStatesMember2024-01-012024-03-310001841666us-gaap:OperatingSegmentsMemberapa:SegmentEgyptMember2024-01-012024-03-310001841666apa:SegmentNorthSeaMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310001841666us-gaap:IntersegmentEliminationMember2024-01-012024-03-310001841666us-gaap:OperatingSegmentsMemberapa:SegmentUnitedStatesMember2024-03-310001841666us-gaap:OperatingSegmentsMemberapa:SegmentEgyptMember2024-03-310001841666apa:SegmentNorthSeaMemberus-gaap:OperatingSegmentsMember2024-03-310001841666us-gaap:IntersegmentEliminationMember2024-03-310001841666apa:OilAndGasExcludingPurchasedMemberus-gaap:OperatingSegmentsMembersrt:OilReservesMemberapa:SegmentUnitedStatesMember2023-01-012023-03-310001841666apa:OilAndGasExcludingPurchasedMemberus-gaap:OperatingSegmentsMemberapa:SegmentEgyptMembersrt:OilReservesMember2023-01-012023-03-310001841666apa:OilAndGasExcludingPurchasedMemberapa:SegmentNorthSeaMemberus-gaap:OperatingSegmentsMembersrt:OilReservesMember2023-01-012023-03-310001841666apa:OilAndGasExcludingPurchasedMemberus-gaap:IntersegmentEliminationMembersrt:OilReservesMember2023-01-012023-03-310001841666apa:OilAndGasExcludingPurchasedMembersrt:OilReservesMember2023-01-012023-03-310001841666apa:OilAndGasExcludingPurchasedMembersrt:NaturalGasReservesMemberus-gaap:OperatingSegmentsMemberapa:SegmentUnitedStatesMember2023-01-012023-03-310001841666apa:OilAndGasExcludingPurchasedMembersrt:NaturalGasReservesMemberus-gaap:OperatingSegmentsMemberapa:SegmentEgyptMember2023-01-012023-03-310001841666apa:OilAndGasExcludingPurchasedMembersrt:NaturalGasReservesMemberapa:SegmentNorthSeaMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310001841666apa:OilAndGasExcludingPurchasedMembersrt:NaturalGasReservesMemberus-gaap:IntersegmentEliminationMember2023-01-012023-03-310001841666apa:OilAndGasExcludingPurchasedMembersrt:NaturalGasReservesMember2023-01-012023-03-310001841666apa:OilAndGasExcludingPurchasedMemberus-gaap:OperatingSegmentsMembersrt:NaturalGasLiquidsReservesMemberapa:SegmentUnitedStatesMember2023-01-012023-03-310001841666apa:OilAndGasExcludingPurchasedMemberus-gaap:OperatingSegmentsMemberapa:SegmentEgyptMembersrt:NaturalGasLiquidsReservesMember2023-01-012023-03-310001841666apa:OilAndGasExcludingPurchasedMemberapa:SegmentNorthSeaMemberus-gaap:OperatingSegmentsMembersrt:NaturalGasLiquidsReservesMember2023-01-012023-03-310001841666apa:OilAndGasExcludingPurchasedMemberus-gaap:IntersegmentEliminationMembersrt:NaturalGasLiquidsReservesMember2023-01-012023-03-310001841666apa:OilAndGasExcludingPurchasedMembersrt:NaturalGasLiquidsReservesMember2023-01-012023-03-310001841666apa:OilAndGasExcludingPurchasedMemberus-gaap:OperatingSegmentsMemberapa:SegmentUnitedStatesMember2023-01-012023-03-310001841666apa:OilAndGasExcludingPurchasedMemberus-gaap:OperatingSegmentsMemberapa:SegmentEgyptMember2023-01-012023-03-310001841666apa:OilAndGasExcludingPurchasedMemberapa:SegmentNorthSeaMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310001841666apa:OilAndGasExcludingPurchasedMemberus-gaap:IntersegmentEliminationMember2023-01-012023-03-310001841666us-gaap:OperatingSegmentsMemberapa:SegmentUnitedStatesMemberus-gaap:OilAndGasPurchasedMember2023-01-012023-03-310001841666us-gaap:OperatingSegmentsMemberapa:SegmentEgyptMemberus-gaap:OilAndGasPurchasedMember2023-01-012023-03-310001841666apa:SegmentNorthSeaMemberus-gaap:OperatingSegmentsMemberus-gaap:OilAndGasPurchasedMember2023-01-012023-03-310001841666us-gaap:IntersegmentEliminationMemberus-gaap:OilAndGasPurchasedMember2023-01-012023-03-310001841666us-gaap:OperatingSegmentsMemberapa:SegmentUnitedStatesMemberus-gaap:OilAndGasMember2023-01-012023-03-310001841666us-gaap:OperatingSegmentsMemberapa:SegmentEgyptMemberus-gaap:OilAndGasMember2023-01-012023-03-310001841666apa:SegmentNorthSeaMemberus-gaap:OperatingSegmentsMemberus-gaap:OilAndGasMember2023-01-012023-03-310001841666us-gaap:IntersegmentEliminationMemberus-gaap:OilAndGasMember2023-01-012023-03-310001841666us-gaap:OperatingSegmentsMemberapa:SegmentUnitedStatesMember2023-01-012023-03-310001841666us-gaap:OperatingSegmentsMemberapa:SegmentEgyptMember2023-01-012023-03-310001841666apa:SegmentNorthSeaMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310001841666us-gaap:IntersegmentEliminationMember2023-01-012023-03-310001841666us-gaap:OperatingSegmentsMemberapa:SegmentUnitedStatesMember2023-03-310001841666us-gaap:OperatingSegmentsMemberapa:SegmentEgyptMember2023-03-310001841666apa:SegmentNorthSeaMemberus-gaap:OperatingSegmentsMember2023-03-310001841666us-gaap:IntersegmentEliminationMember2023-03-310001841666srt:OilReservesMember2024-01-012024-03-310001841666srt:OilReservesMember2023-01-012023-03-310001841666srt:NaturalGasReservesMember2024-01-012024-03-310001841666srt:NaturalGasReservesMember2023-01-012023-03-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
FORM 10-Q 
(Mark One)  
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2024
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _________ to _________
Commission File Number: 1-40144
APA CORPORATION
(Exact name of registrant as specified in its charter)
Delaware86-1430562
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
One Post Oak Central, 2000 Post Oak Boulevard, Suite 100, Houston, Texas 77056-4400
(Address of principal executive offices) (Zip Code)
(713296-6000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.625 par valueAPANasdaq Global Select Market
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 of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such 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 Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit 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 of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filer☐ Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
Number of shares of registrant’s common stock outstanding as of April 30, 2024
371,192,344 




TABLE OF CONTENTS




FORWARD-LOOKING STATEMENTS AND RISKS
This report includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). All statements other than statements of historical facts included or incorporated by reference in this report, including, without limitation, statements regarding the Company’s future financial position, business strategy, budgets, projected revenues, projected costs, plans and objectives of management for future operations and capital returns framework, the anticipated benefits of the merger (the Callon acquisition) between the Company and Callon Petroleum Company (Callon), the anticipated impact of the Callon acquisition on the combined company’s business and future financial and operating results, and the anticipated financial and operational impact and timing of the expected synergies from the Callon acquisition, are forward-looking statements. Such forward-looking statements are based on the Company’s examination of historical operating trends, the information that was used to prepare its estimate of proved reserves as of December 31, 2023, and other data in the Company’s possession or available from third parties. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “will,” “could,” “expect,” “intend,” “project,” “estimate,” “anticipate,” “plan,” “believe,” “continue,” “seek,” “guidance,” “goal,” “might,” “outlook,” “possibly,” “potential,” “prospect,” “should,” “would,” or similar 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 the circumstances, it can give no assurance that such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from the Company’s 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 or pandemics, such 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 prices received for natural gas purchased from third parties to sell and deliver to a U.S. LNG export facility;
the Company’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 war in Ukraine, the armed conflict in Israel and Gaza, and actions taken by foreign oil and gas producing nations, including the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC members that participate in OPEC initiatives (OPEC+);
the availability of capital resources;
capital expenditures and other contractual obligations;
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 policies related to the industries in which the Company and its affiliates operate;
legislative, regulatory, or policy changes, including initiatives addressing the impact of global climate change or further regulating hydraulic fracturing, methane emissions, flaring, or water disposal;
the Company’s performance on environmental, social, and governance measures;
cyberattacks and terrorism;
the Company’s 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;



the integration of acquisitions, including the diversion of management time on integration-related issues for the Callon acquisition and the risk that the Company may not integrate Callon’s operations in a successful manner or in the expected time period;
the risk that the anticipated benefits, cost savings, synergies, and growth from the Callon acquisition may not be fully realized or may take longer to realize than expected;
negative effects of the Callon acquisition on the Company’s business relationships and business generally, the market price of the Company’s common stock, and/or the Company’s operating results;
other factors disclosed under Items 1 and 2—Business and Properties—Estimated Proved Reserves and Future Net Cash Flows, Item 1A—Risk Factors, Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations, Item 7A—Quantitative and Qualitative Disclosures About Market Risk and elsewhere in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023;
other risks and uncertainties disclosed in the Company’s first-quarter 2024 earnings release;
other factors disclosed under Part II, Item 1A—Risk Factors of this Quarterly Report on Form 10-Q; and
other factors disclosed in the other filings that the Company makes with the Securities and Exchange Commission.
Other factors or events that could cause the Company’s actual results to differ materially from the Company’s expectations may emerge from time to time, and it is not possible for the Company to predict all such factors or events. All subsequent written and oral forward-looking statements attributable to the Company, or persons acting on its behalf, are expressly qualified in their entirety by these cautionary statements. All forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q. Except as required by law, the Company disclaims any obligation to update or revise these statements, whether based on changes in internal estimates or expectations, new information, future developments, or otherwise.



DEFINITIONS
All defined terms under Rule 4-10(a) of Regulation S-X shall have their statutorily prescribed meanings when used in this Quarterly Report on Form 10-Q. 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 cubic 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 natural 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.
“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 United 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 Company’s working interest in wells or acreage, “net” oil and gas wells or acreage is determined by multiplying gross wells or acreage by the Company’s working interest therein. Unless otherwise specified, all references to wells and acres are gross.
References to “APA,” the “Company,” “we,” “us,” and “our” refer to APA Corporation and its consolidated subsidiaries, including Apache Corporation, unless otherwise specifically stated. References to “Apache” refer to Apache Corporation, the Company’s wholly owned subsidiary, and its consolidated subsidiaries, unless otherwise specifically stated.



PART I – FINANCIAL INFORMATION
ITEM 1.    FINANCIAL STATEMENTS
APA CORPORATION AND SUBSIDIARIES
STATEMENT OF CONSOLIDATED OPERATIONS
(Unaudited)
For the Quarter Ended
March 31,
20242023
 (In millions, except share data)
REVENUES AND OTHER:
Oil, natural gas, and natural gas liquids production revenues(1)
$1,748 $1,769 
Purchased oil and gas sales(1)
203 239 
Total revenues1,951 2,008 
Derivative instrument gains (losses), net(4)53 
Gain on divestitures, net7 1 
Loss on previously sold Gulf of Mexico properties(66) 
Other, net15 (32)
1,903 2,030 
OPERATING EXPENSES:
Lease operating expenses(1)
338 321 
Gathering, processing, and transmission(1)
84 78 
Purchased oil and gas costs(1)
163 216 
Taxes other than income57 52 
Exploration148 52 
General and administrative93 65 
Transaction, reorganization, and separation27 4 
Depreciation, depletion, and amortization430 332 
Asset retirement obligation accretion40 28 
Financing costs, net76 72 
1,456 1,220 
NET INCOME BEFORE INCOME TAXES447 810 
Current income tax provision300 346 
Deferred income tax provision (benefit)(65)138 
NET INCOME INCLUDING NONCONTROLLING INTERESTS212 326 
Net income attributable to noncontrolling interest
80 84 
NET INCOME ATTRIBUTABLE TO COMMON STOCK$132 $242 
NET INCOME PER COMMON SHARE:
Basic$0.44 $0.78 
Diluted$0.44 $0.78 
WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic302 311 
Diluted302 312 
(1)    For transactions with Kinetik prior to the Company’s sale of its remaining shares of Kinetik Class A Common Stock and the resignation of the Company’s designated director from the Kinetik board of directors, refer to Note 6—Equity Method Interests.
The accompanying notes to consolidated financial statements are an integral part of this statement.
1


APA CORPORATION AND SUBSIDIARIES
STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME
(Unaudited)
 
For the Quarter Ended
March 31,
 20242023
 (In millions)
NET INCOME INCLUDING NONCONTROLLING INTERESTS$212 $326 
OTHER COMPREHENSIVE INCOME, NET OF TAX:
Pension and postretirement benefit plan 3 
COMPREHENSIVE INCOME INCLUDING NONCONTROLLING INTERESTS212 329 
Comprehensive income attributable to noncontrolling interest
80 84 
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON STOCK$132 $245 

The accompanying notes to consolidated financial statements are an integral part of this statement.
2


APA CORPORATION AND SUBSIDIARIES
STATEMENT OF CONSOLIDATED CASH FLOWS
(Unaudited)
For the Three Months Ended
March 31,
  20242023
 (In millions)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income including noncontrolling interests$212 $326 
Adjustments to reconcile net income to net cash provided by operating activities:
Unrealized derivative instrument (gains) losses, net8 (33)
Gain on divestitures, net(7)(1)
Exploratory dry hole expense and unproved leasehold impairments133 35 
Depreciation, depletion, and amortization430 332 
Asset retirement obligation accretion40 28 
Provision for (benefit from) deferred income taxes(65)138 
Gain on extinguishment of debt
 (9)
Loss on previously sold Gulf of Mexico properties66  
Other, net10 30 
Changes in operating assets and liabilities:
Receivables18 (53)
Inventories(17)(31)
Drilling advances and other current assets(26)1 
Deferred charges and other long-term assets6 79 
Accounts payable37 (110)
Accrued expenses(432)(319)
Deferred credits and noncurrent liabilities(45)(78)
NET CASH PROVIDED BY OPERATING ACTIVITIES368 335 
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to upstream oil and gas property(467)(543)
Leasehold and property acquisitions(63)(6)
Proceeds from asset divestitures27 21 
Proceeds from sale of Kinetik Shares
428  
Other, net(13)(4)
NET CASH USED IN INVESTING ACTIVITIES(88)(532)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from (payments on) commercial paper and revolving credit facilities, net
(2)417 
Payments on Apache fixed-rate debt (65)
Distributions to noncontrolling interest
(70)(17)
Treasury stock activity, net(101)(142)
Dividends paid to APA common stockholders(76)(78)
Other, net(16)(9)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES(265)106 
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS15 (91)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR87 245 
CASH AND CASH EQUIVALENTS AT END OF PERIOD$102 $154 
SUPPLEMENTARY CASH FLOW DATA:
Interest paid, net of capitalized interest$104 $112 
Income taxes paid, net of refunds366 286 
The accompanying notes to consolidated financial statements are an integral part of this statement.
3


APA CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Unaudited)
March 31,
2024
December 31,
2023
(In millions, except share data)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents$102 $87 
Receivables, net of allowance of $110 and $114
1,597 1,610 
Other current assets (Note 5)
807 765 
2,506 2,462 
PROPERTY AND EQUIPMENT:
Oil and gas properties45,406 44,860 
Gathering, processing, and transmission facilities448 448 
Other625 634 
Less: Accumulated depreciation, depletion, and amortization(36,336)(35,904)
10,143 10,038 
OTHER ASSETS:
Equity method interests (Note 6)
 437 
Decommissioning security for sold Gulf of Mexico properties (Note 11)
21 21 
Deferred tax asset (Note 10)
1,752 1,758 
Deferred charges and other530 528 
$14,952 $15,244 
LIABILITIES, NONCONTROLLING INTERESTS, AND EQUITY
CURRENT LIABILITIES:
Accounts payable$694 $658 
Current debt2 2 
Other current liabilities (Note 7)
1,456 1,744 
2,152 2,404 
LONG-TERM DEBT (Note 9)
5,178 5,186 
DEFERRED CREDITS AND OTHER NONCURRENT LIABILITIES:
Deferred tax liability (Note 10)
300 371 
Asset retirement obligation (Note 8)
2,400 2,362 
Decommissioning contingency for sold Gulf of Mexico properties (Note 11)
807 764 
Other462 466 
3,969 3,963 
EQUITY:
Common stock, $0.625 par, 860,000,000 shares authorized, 421,137,927 and 420,595,901 shares issued, respectively
263 263 
Paid-in capital11,047 11,126 
Accumulated deficit(2,827)(2,959)
Treasury stock, at cost, 120,031,117 and 117,020,000 shares, respectively
(5,891)(5,790)
Accumulated other comprehensive income15 15 
APA SHAREHOLDERS’ EQUITY2,607 2,655 
Noncontrolling interest
1,046 1,036 
TOTAL EQUITY3,653 3,691 
$14,952 $15,244 


The accompanying notes to consolidated financial statements are an integral part of this statement.
4


APA CORPORATION AND SUBSIDIARIES
STATEMENT OF CONSOLIDATED CHANGES IN EQUITY AND NONCONTROLLING INTERESTS
(Unaudited)
Common
Stock
Paid-In
Capital
Accumulated DeficitTreasury
Stock
Accumulated
Other
Comprehensive
Income
APA SHAREHOLDERS’
EQUITY
Noncontrolling
Interest
TOTAL
EQUITY
(In millions)
For the Quarter Ended March 31, 2023
Balance at December 31, 2022
$262 $11,420 $(5,814)$(5,459)$14 $423 $922 $1,345 
Net income attributable to common stock— — 242 — — 242 — 242 
Net income attributable to noncontrolling interest
— — — — — — 84 84 
Distributions to noncontrolling interest
— — — — — — (17)(17)
Common dividends declared ($0.25 per share)
— (78)— — — (78)— (78)
Treasury stock activity, net— — — (142)— (142)— (142)
Other1 (5)— — 3 (1)— (1)
Balance at March 31, 2023
$263 $11,337 $(5,572)$(5,601)$17 $444 $989 $1,433 
For the Quarter Ended March 31, 2024
Balance at December 31, 2023
$263 $11,126 $(2,959)$(5,790)$15 $2,655 $1,036 $3,691 
Net income attributable to common stock— — 132 — — 132 — 132 
Net income attributable to noncontrolling interest
— — — — — — 80 80 
Distributions to noncontrolling interest
— — — — — — (70)(70)
Common dividends declared ($0.25 per share)
— (75)— — — (75)— (75)
Treasury stock activity, net— — — (101)— (101)— (101)
Other— (4)— — — (4)— (4)
Balance at March 31, 2024
$263 $11,047 $(2,827)$(5,891)$15 $2,607 $1,046 $3,653 


The accompanying notes to consolidated financial statements are an integral part of this statement.
5


APA CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
These consolidated financial statements have been prepared by APA Corporation (APA or the Company) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). They reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods, on a basis consistent with the annual audited financial statements, with the exception of any recently adopted accounting pronouncements. All such adjustments are of a normal recurring nature. Certain information, accounting policies, and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. This Quarterly Report on Form 10-Q should be read along with the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which contains a summary of the Company’s significant accounting policies and other disclosures.
1.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
As of March 31, 2024, the Company's significant accounting policies are consistent with those discussed in Note 1—Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The Company’s financial statements for prior periods may include reclassifications that were made to conform to the current-year presentation.
Principles of Consolidation
The accompanying consolidated financial statements include the accounts of APA and its subsidiaries after elimination of intercompany balances and transactions.
The Company’s undivided interests in oil and gas exploration and production ventures and partnerships are proportionately consolidated. The Company consolidates all other investments in which, either through direct or indirect ownership, it has more than a 50 percent voting interest or controls the financial and operating decisions.
Sinopec International Petroleum Exploration and Production Corporation (Sinopec) owns a one-third minority participation in the Company’s consolidated Egypt oil and gas business as a noncontrolling interest, which is reflected as a separate noncontrolling interest component of equity in the Company’s consolidated balance sheet. The Company has determined that a limited partnership and APA subsidiary, which has control over APA’s Egyptian operations, qualifies as a variable interest entity (VIE) under GAAP. Apache consolidates the activities of APA’s Egyptian operations because it has concluded that a wholly owned subsidiary has a controlling financial interest in APA’s Egyptian operations and was determined to be the primary beneficiary of the VIE.
Investments in which the Company has significant influence, but not control, are accounted for under the equity method of accounting. During each of the periods ended March 31, 2024 and 2023, the Company had a designated director on the Kinetik Holdings Inc. (Kinetik) board of directors. As a result, the Company is considered to have had significant influence over Kinetik for all periods presented. The Company’s designated director resigned from the Kinetik board of directors on April 3, 2024.
As of December 31, 2023, the Company held shares of Kinetik Class A Common Stock (Kinetik Shares), which were recorded separately as “Equity method interests” in the Company’s consolidated balance sheet. On March 18, 2024, the Company sold its remaining Kinetik Shares. Refer to Note 6—Equity Method Interests for further detail.

6


Use of Estimates
Preparation of financial statements in conformity with GAAP and disclosure of contingent assets and liabilities requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. The Company evaluates its estimates and assumptions on a regular basis. Actual results may differ from these estimates and assumptions used in preparation of the Company’s financial statements, and changes in these estimates are recorded when known.
Significant estimates with regard to these financial statements include the estimates of fair value for long-lived assets (refer to “Fair Value Measurements” and “Property and Equipment” sections in this Note 1 below), the fair value determination of acquired assets and liabilities (refer to Note 2—Acquisitions and Divestitures), the assessment of asset retirement obligations (refer to Note 8—Asset Retirement Obligation), the estimate of income taxes (refer to Note 10—Income Taxes), the estimation of the contingent liability representing Apache’s potential decommissioning obligations on sold properties in the Gulf of Mexico (refer to Note 11—Commitments and Contingencies), and the estimate of proved oil and gas reserves and related present value estimates of future net cash flows therefrom.
Fair Value Measurements
Certain assets and liabilities are reported at fair value on a recurring basis in the Company’s consolidated balance sheet. Accounting Standards Codification (ASC) 820-10-35, “Fair Value Measurement” (ASC 820), provides a hierarchy that prioritizes and defines the types of inputs used to measure fair value. The fair value hierarchy gives the highest priority to Level 1 inputs, which consist of unadjusted quoted prices for identical instruments in active markets. Level 2 inputs consist of quoted prices for similar instruments. Level 3 valuations are derived from inputs that are significant and unobservable; hence, these valuations have the lowest priority.
The valuation techniques that may be used to measure fair value include a market approach, an income approach, and a cost approach. A market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. An income approach uses valuation techniques to convert future amounts to a single present amount based on current market expectations, including present value techniques, option-pricing models, and the excess earnings method. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost).
Refer to Note 4—Derivative Instruments and Hedging Activities, Note 6—Equity Method Interests, and Note 9—Debt and Financing Costs for further detail regarding the Company’s fair value measurements recorded on a recurring basis.
During the three months ended March 31, 2024 and 2023, the Company recorded no asset impairments in connection with fair value assessments.
Revenue Recognition
Receivables from contracts with customers, including receivables for purchased oil and gas sales and net of allowance for credit losses, were $1.4 billion and $1.5 billion as of March 31, 2024 and December 31, 2023, respectively. Payments under all contracts with customers are typically due and received within a short-term period of one year or less, after physical delivery of the product or service has been rendered. Over the past year, the Company experienced a gradual decline in the timeliness of receipts from the Egyptian General Petroleum Corporation (EGPC) for the Company’s Egyptian oil and gas sales. Although the Company continues to receive periodic payments from EGPC, economic conditions in Egypt have lessened the availability of U.S. dollars in Egypt, resulting in a delay in receipts from EGPC. Continuation of the currency shortage in Egypt could lead to further delays, deferrals of payment, or non-payment in the future; however, the Company currently anticipates that it will ultimately be able to collect its receivable from EGPC.
Oil and gas production revenues include income taxes that will be paid to the Arab Republic of Egypt by EGPC on behalf of the Company. Revenue and associated expenses related to such tax volumes are recorded as “Oil, natural gas, and natural gas liquids production revenues” and “Current income tax provision,” respectively, in the Company’s statement of consolidated operations.
Refer to Note 13—Business Segment Information for a disaggregation of oil, gas, and natural gas production revenue by product and reporting segment.
7


In accordance with the provisions of ASC 606, “Revenue from Contracts with Customers,” variable market prices for each short-term commodity sale are allocated entirely to each performance obligation as the terms of payment relate specifically to the Company’s efforts to satisfy its obligations. As such, the Company has elected the practical expedients available under the standard to not disclose the aggregate transaction price allocated to unsatisfied, or partially unsatisfied, performance obligations as of the end of the reporting period.
Inventories
Inventories consist principally of tubular goods and equipment and are stated at the lower of weighted-average cost or net realizable value. Oil produced but not sold, primarily in the North Sea, is also recorded to inventory and is stated at the lower of the cost to produce or net realizable value.
Property and Equipment
The carrying value of the Company’s property and equipment represents the cost incurred to acquire the property and equipment, including capitalized interest, net of any impairments. For business combinations and acquisitions, property and equipment cost is based on the fair values at the acquisition date.
Oil and Gas Property
The Company follows the successful efforts method of accounting for its oil and gas property. Under this method of accounting, exploration costs, production costs, general corporate overhead, and similar activities are expensed as incurred. If an exploratory well provides evidence to justify potential development of reserves, drilling costs associated with the well are initially capitalized, or suspended, pending a determination as to whether a commercially sufficient quantity of proved reserves can be attributed to the area as a result of drilling. At the end of each quarter, management reviews the status of all suspended exploratory well costs in light of ongoing exploration activities, and if management determines that future appraisal drilling or development activities are unlikely to occur, associated suspended exploratory well costs are expensed.
Costs to develop proved reserves, including the costs of all development wells and related equipment used in the production of crude oil and natural gas, are capitalized. Depreciation of the cost of proved oil and gas properties is calculated using the unit-of-production (UOP) method. The UOP calculation multiplies the percentage of estimated proved reserves produced each quarter by the carrying value of associated proved oil and gas properties.
When circumstances indicate that the carrying value of proved oil and gas properties may not be recoverable, the Company compares unamortized capitalized costs to the expected undiscounted pre-tax future cash flows for the associated assets grouped at the lowest level for which identifiable cash flows are independent of cash flows of other assets. If the expected undiscounted pre-tax future cash flows, based on the Company’s estimate of future crude oil and natural gas prices, operating costs, anticipated production from proved reserves and other relevant data, are lower than the unamortized capitalized cost, the capitalized cost is reduced to fair value.
Unproved leasehold impairments are typically recorded as a component of “Exploration” expense in the Company’s statement of consolidated operations. Gains and losses on divestitures of the Company’s oil and gas properties are recognized in the statement of consolidated operations upon closing of the transaction. Refer to Note 2—Acquisitions and Divestitures for more detail.
Gathering, Processing, and Transmission (GPT) Facilities
GPT facilities are depreciated on a straight-line basis over the estimated useful lives of the assets. The estimation of useful life takes into consideration anticipated production lives from the fields serviced by the GPT assets, whether APA-operated or third party-operated, as well as potential development plans by the Company for undeveloped acreage within, or close to, those fields.
The Company assesses the carrying amount of its GPT facilities whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying amount of these facilities is more than the sum of the undiscounted cash flows, an impairment loss is recognized for the excess of the carrying value over its fair value.
New Pronouncements Issued But Not Yet Adopted
There were no material changes in recently issued or adopted accounting standards from those disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
8


2.    ACQUISITIONS AND DIVESTITURES
2024 Activity
Callon Petroleum Company Acquisition
On April 1, 2024, APA completed its acquisition of Callon Petroleum Company (Callon) in an all-stock transaction valued at approximately $4.5 billion, inclusive of Callon’s debt (the Callon acquisition). The transaction was approved by APA and Callon shareholders at special meetings held on March 27, 2024.
Subject to the terms of the merger agreement, each share of Callon common stock was converted into the right to receive 1.0425 shares of APA common stock, with cash in lieu of fractional shares. As a result, APA issued approximately 70 million shares of APA common stock in connection with the transaction, and following the acquisition, Callon common stock is no longer listed for trading on the NYSE.
Upon completing the acquisition, APA refinanced substantially all of Callon’s debt by borrowing under APA’s US dollar denominated syndicated credit facilities. Refer to Note 9—Debt and Financing Costs for further detail.
Sale of Kinetik Shares
On March 18, 2024, the Company sold its remaining Kinetik Shares for cash proceeds of $428 million. Refer to Note 6—Equity Method Interests for further detail.
Leasehold and Property Acquisitions
During the first quarter of 2024, the Company completed leasehold and property acquisitions, primarily in the Permian Basin, for total cash consideration of approximately $63 million.
U.S. Divestitures
During the first quarter of 2024, the Company completed the sale of non-core assets and leasehold in multiple transactions for total cash proceeds of $27 million, recognizing a gain of approximately $7 million upon closing of these transactions.
2023 Activity
Leasehold and Property Acquisitions
During the first quarter of 2023, the Company completed leasehold and property acquisitions, primarily in the Permian Basin, for total cash consideration of approximately $6 million.
U.S. Divestitures
During the first quarter of 2023, the Company completed the sale of non-core assets and leasehold in multiple transactions for total cash proceeds of $21 million, recognizing a gain of approximately $1 million upon closing of these transactions.
3.    CAPITALIZED EXPLORATORY WELL COSTS
The Company’s capitalized exploratory well costs were $587 million and $586 million as of March 31, 2024 and December 31, 2023, respectively. Approximately $51 million of suspended well costs previously capitalized for greater than one year at December 31, 2023 were charged to dry hole expense during the first quarter of 2024. This was offset by increased capital exploratory well costs attributable to additional drilling activity in Egypt and in the U.S. in the first quarter of 2024.
Projects with suspended exploratory well costs capitalized for a period greater than one year since the completion of drilling are those identified by management as exhibiting sufficient quantities of hydrocarbons to justify potential development. Management is actively pursuing efforts to assess whether proved reserves can be attributed to these projects.
9


4.    DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Objectives and Strategies
The Company is exposed to fluctuations in crude oil and natural gas prices on the majority of its worldwide production, as well as fluctuations in exchange rates in connection with transactions denominated in foreign currencies. The Company manages the variability in its cash flows by occasionally entering into derivative transactions on a portion of its crude oil and natural gas production and foreign currency transactions. The Company utilizes various types of derivative financial instruments, including forward contracts, futures contracts, swaps, and options, to manage fluctuations in cash flows resulting from changes in commodity prices or foreign currency values.
Counterparty Risk
The use of derivative instruments exposes the Company to credit loss in the event of nonperformance by the counterparty. To reduce the concentration of exposure to any individual counterparty, the Company utilizes a diversified group of investment-grade rated counterparties, primarily financial institutions, for its derivative transactions. As of March 31, 2024, the Company had derivative positions with four counterparties. The Company monitors counterparty creditworthiness on an ongoing basis; however, it cannot predict sudden changes in counterparties’ creditworthiness. In addition, even if such changes are not sudden, the Company may be limited in its ability to mitigate an increase in counterparty credit risk. Should one of these counterparties not perform, the Company may not realize the benefit of some of its derivative instruments resulting from lower commodity prices or changes in currency exchange rates.
Derivative Instruments
Commodity Derivative Instruments
As of March 31, 2024, the Company had the following open natural gas financial basis swap contracts:
Basis Swap PurchasedBasis Swap Sold
Production PeriodSettlement IndexMMBtu
(in 000’s)
Weighted Average Price DifferentialMMBtu
(in 000’s)
Weighted Average Price Differential
April—June 2024
NYMEX Henry Hub/IF Waha8,190 $(1.15)— 
April—June 2024
NYMEX Henry Hub/IF HSC— 8,190 $(0.10)
Fair Value Measurements
The following table presents the Company’s derivative assets and liabilities measured at fair value on a recurring basis:
Fair Value Measurements Using
Quoted Price in Active Markets
(Level 1)
Significant Other Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Total
Fair Value
Netting(1)
Carrying Amount
(In millions)
March 31, 2024
Liabilities:
Commodity derivative instruments$ $2 $ $2 $ $2 
December 31, 2023
Assets:
Commodity derivative instruments$ $6 $ $6 $ $6 
(1)    The derivative fair values are based on analysis of each contract on a gross basis, excluding the impact of netting agreements with counterparties and reclassifications between long-term and short-term balances.
10


The fair values of the Company’s derivative instruments are not actively quoted in the open market. The Company primarily uses a market approach to estimate the fair values of these derivatives on a recurring basis, utilizing futures pricing for the underlying positions provided by a reputable third party, a Level 2 fair value measurement.
Derivative Activity Recorded in the Consolidated Balance Sheet
All derivative instruments are reflected as either assets or liabilities at fair value in the consolidated balance sheet. These fair values are recorded by netting asset and liability positions where counterparty master netting arrangements contain provisions for net settlement. The carrying value of the Company’s derivative assets and liabilities and their locations on the consolidated balance sheet are as follows:
March 31,
2024
December 31,
2023
(In millions)
Current Assets: Other current assets$ $6 
Total derivative assets$ $6 
Current Liabilities: Other current liabilities$2 $ 
Total derivative liabilities$2 $ 
Derivative Activity Recorded in the Statement of Consolidated Operations
The following table summarizes the effect of derivative instruments on the Company’s statement of consolidated operations:
 
For the Quarter Ended
March 31,
20242023
 (In millions)
Realized:
Commodity derivative instruments$4 $20 
Realized gains, net
4 20 
Unrealized:
Commodity derivative instruments(8)33 
Unrealized gains (losses), net(8)33 
Derivative instrument gains (losses), net$(4)$53 
Derivative instrument gains and losses are recorded in “Derivative instrument gains (losses), net” under “Revenues and Other” in the Company’s statement of consolidated operations. Unrealized gains (losses) for derivative activity recorded in the statement of consolidated operations are reflected in the statement of consolidated cash flows separately as “Unrealized derivative instrument (gains) losses, net” under “Adjustments to reconcile net income to net cash provided by operating activities.”
5.    OTHER CURRENT ASSETS
The following table provides detail of the Company’s other current assets:
March 31,
2024
December 31,
2023
 (In millions)
Inventories$472 $453 
Drilling advances116 88 
Prepaid assets and other54 46 
Current decommissioning security for sold Gulf of Mexico assets165 178 
Total Other current assets$807 $765 
11


6.    EQUITY METHOD INTERESTS
As of December 31, 2023, the Company held 13.1 million Kinetik Shares, which were recorded at fair value of $437 million and reflected separately as “Equity method interests” in the Company’s consolidated balance sheet. The Company elected the fair value option for measuring its equity method interest in Kinetik based on practical expedience, variances in reporting timelines, and cost-benefit considerations. The fair value of the Company’s interest in Kinetik was determined using observable share prices on a major exchange, a Level 1 fair value measurement. On March 18, 2024, the Company sold its remaining Kinetik Shares for cash proceeds of $428 million.
Prior to the Company’s sale of its remaining Kinetik Shares and the resignation of the Company’s designated director from the Kinetik board of directors, the Company recorded changes in the fair value of its equity method interest in Kinetik totaling losses of $9 million and $19 million in the first quarters of 2024 and 2023, respectively. These losses were recorded as a component of “Revenues and Other” in the Company’s statement of consolidated operations.
The following table represents related party sales and costs associated with Kinetik prior to the Company’s sale of its remaining Kinetik Shares and the resignation of the Company’s designated director from the Kinetik board of directors:
For the Quarter Ended
March 31,
20242023
(In millions)
Natural gas and NGLs sales$13 $14 
Purchased oil and gas sales22  
$35 $14 
Gathering, processing, and transmission costs$23 $26 
Purchased oil and gas costs23  
Lease operating expenses
2  
$48 $26 
7.    OTHER CURRENT LIABILITIES
The following table provides detail of the Company’s other current liabilities:
March 31,
2024
December 31,
2023
 (In millions)
Accrued operating expenses$165 $162 
Accrued exploration and development530 371 
Accrued compensation and benefits136 390 
Accrued interest67 93 
Accrued income taxes86 138 
Current asset retirement obligation75 76 
Current operating lease liability119 116 
Current decommissioning contingency for sold Gulf of Mexico properties40 60 
Other238 338 
Total Other current liabilities$1,456 $1,744 
12


8.    ASSET RETIREMENT OBLIGATION
The following table describes changes to the Company’s asset retirement obligation (ARO) liability:
March 31,
2024
 (In millions)
Asset retirement obligation, December 31, 2023
$2,438 
Liabilities incurred1 
Liabilities acquired4 
Liabilities settled(9)
Accretion expense40 
Revisions in estimated liabilities1 
Asset retirement obligation, March 31, 2024
2,475 
Less current portion(75)
Asset retirement obligation, long-term$2,400 
9.    DEBT AND FINANCING COSTS
The following table presents the carrying values of the Company’s debt:
March 31,
2024
December 31,
2023
(In millions)
Apache notes and debentures before unamortized discount and debt issuance costs(1)
$4,835 $4,835 
Commercial paper and syndicated credit facilities(2)
370 372 
Apache finance lease obligations31 32 
Unamortized discount(26)(26)
Debt issuance costs(30)(25)
Total debt5,180 5,188 
Current maturities(2)(2)
Long-term debt$5,178 $5,186 
(1)    The fair values of the Apache notes and debentures were $4.3 billion at each of March 31, 2024 and December 31, 2023.
The Company uses a market approach to determine the fair values of its notes and debentures using estimates provided by an independent investment financial data services firm (a Level 2 fair value measurement).
(2)    The carrying value of borrowings on commercial paper and credit facilities approximates fair value because interest rates are variable and reflective of market rates.
At each of March 31, 2024 and December 31, 2023, current debt included $2 million of finance lease obligations.
Financing Costs, Net
The following table presents the components of the Company’s financing costs, net:
 
For the Quarter Ended
March 31,
 20242023
 (In millions)
Interest expense$85 $88 
Amortization of debt issuance costs1 1 
Capitalized interest(7)(6)
Gain on extinguishment of debt
 (9)
Interest income(3)(2)
Financing costs, net$76 $72 
During the quarter ended March 31, 2023, Apache purchased in the open market and canceled senior notes issued under its indentures in an aggregate principal amount of $74 million for an aggregate purchase price of $65 million in cash. The Company recognized a $9 million gain on these repurchases.
13


Unsecured 2022 Committed Bank Credit Facilities
On April 29, 2022, the Company entered into two unsecured syndicated credit agreements for general corporate purposes.
One agreement is denominated in US dollars (the USD Agreement) and provides for an unsecured five-year revolving credit facility, with aggregate commitments of US$1.8 billion (including a letter of credit subfacility of up to US$750 million, of which US$150 million currently is committed). The Company may increase commitments up to an aggregate US$2.3 billion by adding new lenders or obtaining the consent of any increasing existing lenders. This facility matures in April 2027, subject to the Company’s two, one-year extension options.
The second agreement is denominated in pounds sterling (the GBP Agreement) and provides for an unsecured five-year revolving credit facility, with aggregate commitments of £1.5 billion for loans and letters of credit. This facility matures in April 2027, subject to the Company’s two, one-year extension options.

Apache may borrow under the USD Agreement up to an aggregate principal amount of US$300 million outstanding at any given time. Apache has guaranteed obligations under each of the USD Agreement and GBP Agreement effective until the aggregate principal amount of indebtedness under senior notes and debentures outstanding under Apache’s existing indentures first is less than US$1.0 billion.
As of March 31, 2024, there were $30 million of borrowings under the USD Agreement and an aggregate £348 million in letters of credit outstanding under the GBP Agreement. As of March 31, 2024, there were no letters of credit outstanding under the USD Agreement. As of December 31, 2023, there were $372 million of borrowings under the USD Agreement and an aggregate £348 million in letters of credit outstanding under the GBP Agreement. As of December 31, 2023, there were no letters of credit outstanding under the USD Agreement. The letters of credit denominated in pounds were issued to support North Sea decommissioning obligations, the terms of which require such support while Apache’s credit rating by Standard & Poor’s remains below BBB; on March 26, 2020, Standard & Poor’s reduced Apache’s rating from BBB to BB+, which was affirmed in 2023.
Uncommitted Lines of Credit
Each of the Company and Apache, from time to time, has and uses uncommitted credit and letter of credit facilities for working capital and credit support purposes. As of March 31, 2024 and December 31, 2023, there were no outstanding borrowings under these facilities. At each of March 31, 2024 and December 31, 2023, there were £416 million and $2 million in letters of credit outstanding under these facilities.
Commercial Paper Program
In December 2023, the Company established a commercial paper program under which it from time to time may issue in private placements exempt from registration under the Securities Act short-term unsecured promissory notes (CP Notes) up to a maximum aggregate face amount of $1.8 billion outstanding at any time. The maturities of CP Notes may vary but may not exceed 397 days from the date of issuance. Outstanding CP Notes are supported by available borrowing capacity under the Company’s committed $1.8 billion USD Agreement.
Payment of CP Notes has been unconditionally guaranteed on an unsecured basis by Apache, such guarantee effective until the first time that the aggregate principal amount of indebtedness under senior notes and debentures outstanding under Apache’s existing indentures is less than US$1.0 billion.
As of March 31, 2024, there was $340 million in aggregate face amount of CP Notes outstanding, which is classified as long-term debt. As of December 31, 2023, there were no CP Notes outstanding.
14


Unsecured Committed Term Loan Facility
On January 30, 2024, APA entered into a syndicated credit agreement under which the lenders have committed an aggregate $2.0 billion for senior unsecured delayed-draw term loans to APA (Term Loan Credit Agreement), the proceeds of which could be used to refinance certain indebtedness of Callon only on the date of closing of transactions under the Merger Agreement. Refer to “Subsequent Events” for further detail. Apache has guaranteed obligations under the Term Loan Credit Agreement effective until the aggregate principal amount of indebtedness under senior notes and debentures outstanding under Apache’s existing indentures first is less than $1.0 billion.
Subsequent Events
On April 1, 2024, APA closed the transactions under the Term Loan Credit Agreement. APA borrowed an aggregate $1.5 billion in senior unsecured term loans that mature April 1, 2027. Loan proceeds were used to refinance certain indebtedness of Callon upon the substantially simultaneous closing of APA’s acquisition of Callon pursuant to the Merger Agreement and to pay related fees and expenses. APA may at any time prepay loans under the Term Loan Credit Agreement.
The lenders under the Term Loan Credit Agreement committed an aggregate $2.0 billion for senior unsecured delayed-draw term loans to APA available for borrowing only once upon the date of the closings under the Merger Agreement and Term Loan Credit Agreement, of which $1.5 billion was for term loans that would mature three years after the date of such closings (3-Year Tranche Loans) and $500 million was for term loans that would mature 364 days after the date of such closings (364-Day Tranche Loans). APA elected to borrow only under the 3-Year Tranche Loans and to allow the lender commitments for the 364-Day Tranche Loans to expire.
Indebtedness of Callon that APA could refinance by borrowing under the Term Loan Credit Agreement included indebtedness outstanding under (i) the Amended and Restated Credit Agreement, dated October 19, 2022, among Callon, JPMorgan Chase Bank, N.A., as administrative agent, and the lenders party thereto (Callon Credit Agreement), (ii) Callon’s 6.375% Senior Notes due 2026 (Callon’s 2026 Notes), (iii) Callon’s 8.00% Senior Notes due 2028 (Callon’s 2028 Notes), and (iv) Callon’s 7.500% Senior Notes due 2030 (Callon’s 2030 Notes). On April 1, 2024, all indebtedness under the Callon Credit Agreement and Callon’s 2026 Notes was repaid, and the aggregate principal balance remaining outstanding under Callon’s 2028 Notes and Callon’s 2030 Notes was reduced to $24 million. Given the aggregate principal balance remaining outstanding under Callon’s 2028 Notes and Callon’s 2030 Notes, no guarantee by Callon of APA’s obligations under the Term Loan Credit Agreement is required.
On April 1, 2024, the following Callon indebtedness was repaid by borrowings under the Term Loan Credit Agreement and USD Agreement:
Callon closed cash tender offers for Callon’s 2028 Notes and Callon’s 2030 Notes, accepting for purchase $1.2 billion aggregate principal amount of notes. Callon paid holders an aggregate $1.3 billion in cash, reflecting principal, premium to par, early tender consent fee, and accrued and unpaid interest.
Callon redeemed the outstanding $321 million principal amount of Callon’s 2026 Notes at a redemption price equal to 101.063% of their principal amount, plus accrued and unpaid interest to the redemption date.
Callon repaid the aggregate $472 million owed under the Callon Credit Agreement, including principal, accrued and unpaid interest, and certain fees.
On April 26, 2024, Callon notified holders of its election to fully redeem on May 6, 2024 the outstanding $8.3 million principal amount of Callon’s 2028 Notes at a redemption price equal to 101.588% of their principal amount and $15.6 million principal amount of Callon’s 2030 Notes at a redemption price equal to 102.803% of their principal amount, in each case, plus accrued and unpaid interest to the redemption date.
10.    INCOME TAXES
The Company estimates its annual effective income tax rate in recording its quarterly provision for income taxes in the various jurisdictions in which the Company operates. Non-cash impairments on the carrying value of the Company’s oil and gas properties, gains and losses on the sale of assets, statutory tax rate changes, and other significant or unusual items are recognized as discrete items in the quarter in which they occur.
15


The Company’s effective income tax rate for the three months ended March 31, 2024 differed from the U.S. federal statutory income tax rate of 21 percent due to taxes on foreign operations. The Company’s effective income tax rate for the three months ended March 31, 2023 differed from the U.S. federal statutory income tax rate of 21 percent due to taxes on foreign operations, a deferred tax expense related to the remeasurement of taxes in the U.K. as a result of the enactment of Finance Act 2023, and a decrease in the amount of valuation allowance against its U.S. deferred tax assets.
In December 2021, the Organisation for Economic Co-operation and Development issued Pillar Two Model Rules introducing a new global minimum tax of 15 percent on a country-by-country basis, with certain aspects effective in certain jurisdictions on January 1, 2024. Although the Company continues to monitor enacted legislation to implement these rules in countries where the Company could be impacted, APA does not expect that the Pillar Two framework will have a material impact on its consolidated financial statements.
The Company and its subsidiaries are subject to U.S. federal income tax as well as income or capital taxes in various states and foreign jurisdictions. The Company’s tax reserves are related to tax years that may be subject to examination by the relevant taxing authority.
11.    COMMITMENTS AND CONTINGENCIES
Legal Matters
The Company is party to various legal actions arising in the ordinary course of business, including litigation and governmental and regulatory controls, which also may include controls related to the potential impacts of climate change. As of March 31, 2024, the Company has an accrued liability of approximately $84 million for all legal contingencies that are deemed to be probable of occurring and can be reasonably estimated. The Company’s estimates are based on information known about the matters and its experience in contesting, litigating, and settling similar matters. Although actual amounts could differ from management’s estimate, none of the actions are believed by management to involve future amounts that would be material to the Company’s financial position, results of operations, or liquidity after consideration of recorded accruals. With respect to material matters for which the Company believes an unfavorable outcome is reasonably possible, the Company has disclosed the nature of the matter and a range of potential exposure, unless an estimate cannot be made at this time. It is management’s opinion that the loss for any other litigation matters and claims that are reasonably possible to occur will not have a material adverse effect on the Company’s financial position, results of operations, or liquidity.
For additional information on Legal Matters described below, refer to Note 11—Commitments and Contingencies to the consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
Argentine Environmental Claims
On March 12, 2014, the Company and its subsidiaries completed the sale of all of the Company’s subsidiaries’ operations and properties in Argentina to YPF Sociedad Anonima (YPF). As part of that sale, YPF assumed responsibility for all of the past, present, and future litigation in Argentina involving Company subsidiaries, except that Company subsidiaries have agreed to indemnify YPF for certain environmental, tax, and royalty obligations capped at an aggregate of $100 million. The indemnity is subject to specific agreed conditions precedent, thresholds, contingencies, limitations, claim deadlines, loss sharing, and other terms and conditions. On April 11, 2014, YPF provided its first notice of claims pursuant to the indemnity. Company subsidiaries have not paid any amounts under the indemnity but will continue to review and consider claims presented by YPF. Further, Company subsidiaries retain the right to enforce certain Argentina-related indemnification obligations against Pioneer Natural Resources Company (Pioneer) in an amount up to $45 million pursuant to the terms and conditions of stock purchase agreements entered in 2006 between Company subsidiaries and subsidiaries of Pioneer.
Louisiana Restoration 
As more fully described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, Louisiana surface owners often file lawsuits or assert claims against oil and gas companies, including the Company, claiming that operators and working interest owners in the chain of title are liable for environmental damages on the leased premises, including damages measured by the cost of restoration of the leased premises to its original condition, regardless of the value of the underlying property. From time to time, restoration lawsuits and claims are resolved by the Company for amounts that are not material to the Company, while new lawsuits and claims are asserted against the Company. With respect to each of the pending lawsuits and claims, the amount claimed is not currently determinable or is not material. Further, the overall exposure related to these lawsuits and claims is not currently determinable. While adverse judgments against the Company are possible, the Company intends to actively defend these lawsuits and claims.
16


Starting in November of 2013 and continuing into 2023, several parishes in Louisiana have pending lawsuits against many oil and gas producers, including the Company. In these cases, the Parishes, as plaintiffs, allege that defendants’ oil and gas exploration, production, and transportation operations in specified fields were conducted in violation of the State and Local Coastal Resources Management Act of 1978, as amended, and applicable regulations, rules, orders, and ordinances promulgated or adopted thereunder by the Parish or the State of Louisiana. Plaintiffs allege that defendants caused substantial damage to land and water bodies located in the coastal zone of Louisiana. Plaintiffs seek, among other things, unspecified damages for alleged violations of applicable law within the coastal zone, the payment of costs necessary to clear, re-vegetate, detoxify, and otherwise restore the subject coastal zone as near as practicable to its original condition, and actual restoration of the coastal zone to its original condition. Without acknowledging or admitting any liability and solely to avoid the expense and uncertainty of future litigation, the Company agreed to settle with the State of Louisiana and Louisiana coastal Parishes to resolve any potential liability on the part of the Company for claims that were or could have been asserted by the coastal Parishes and/or the State of Louisiana in the pending litigation. The settlement is subject to court approval, which the parties hope to receive at some point in the first half of 2024. The consideration to be provided by the Company in the settlement will not have a material impact on the Company’s financial position. Following settlement of these various lawsuits, the Company will be a defendant in only two remaining coastal zone lawsuits, one filed by the City of New Orleans against the Company and a number of oil and gas operators and the other filed against Callon Offshore Production, Inc., among many other oil and gas operators, and pending in St. Bernard Parish, Louisiana. The Company will now oversee the latter lawsuit as a result of the merger with Callon Petroleum Company.
Apollo Exploration Lawsuit
In a case captioned Apollo Exploration, LLC, Cogent Exploration, Ltd. Co. & SellmoCo, LLC v. Apache Corporation, Cause No. CV50538 in the 385th Judicial District Court, Midland County, Texas, plaintiffs alleged damages in excess of $200 million (having previously claimed in excess of $1.1 billion) relating to purchase and sale agreements, mineral leases, and area of mutual interest agreements concerning properties located in Hartley, Moore, Potter, and Oldham Counties, Texas. The trial court entered final judgment in favor of the Company, ruling that the plaintiffs take nothing by their claims and awarding the Company its attorneys’ fees and costs incurred in defending the lawsuit. The court of appeals affirmed in part and reversed in part the trial court’s judgment thereby reinstating some of plaintiffs’ claims. The Texas Supreme Court granted the Company’s petition for review and heard oral argument in October 2022. On April 28, 2023, the Texas Supreme Court reversed the court of appeals’ decision and remanded the case back to the court of appeals for further proceedings. After plaintiffs’ request for rehearing, on July 21, 2023, the Texas Supreme Court reaffirmed its reversal of the court of appeals’ decision and remand of the case back to the court of appeals for further proceedings.
Australian Operations Divestiture Dispute
Pursuant to a Sale and Purchase Agreement dated April 9, 2015 (Quadrant SPA), the Company and its subsidiaries divested Australian operations to Quadrant Energy Pty Ltd (Quadrant). Closing occurred on June 5, 2015. In April 2017, the Company filed suit against Quadrant for breach of the Quadrant SPA. In its suit, the Company seeks approximately AUD $80 million. In December 2017, Quadrant filed a defense of equitable set-off to the Company’s claim and a counterclaim seeking approximately AUD $200 million in the aggregate. The Company will vigorously prosecute its claim while vigorously defending against Quadrant’s counter claims.
California and Delaware Litigation
On July 17, 2017, in three separate actions, San Mateo and Marin Counties, and the City of Imperial Beach, California, all filed suit individually and on behalf of the people of the state of California against over 30 oil and gas companies alleging damages as a result of global warming. Plaintiffs seek unspecified damages and abatement under various tort theories. On December 20, 2017, in two separate actions, the City of Santa Cruz and Santa Cruz County filed similar lawsuits against many of the same defendants. On January 22, 2018, the City of Richmond filed a similar lawsuit.
On September 10, 2020, the State of Delaware filed suit, individually and on behalf of the people of the State of Delaware, against over 25 oil and gas companies alleging damages as a result of global warming. Plaintiffs seek unspecified damages and abatement under various tort theories.
The Company intends to challenge personal jurisdiction in California and to vigorously defend the Delaware lawsuit.
17


Kulp Minerals Lawsuit
On or about April 7, 2023, Apache was sued in a purported class action in New Mexico styled Kulp Minerals LLC v. Apache Corporation, Case No. D-506-CV-2023-00352 in the Fifth Judicial District. The Kulp Minerals case has not been certified and seeks to represent a group of owners allegedly owed statutory interest under New Mexico law as a result of purported late oil and gas payments. The amount of this claim is not yet reasonably determinable. The Company intends to vigorously defend against the claims asserted in this lawsuit.
Shareholder and Derivative Lawsuits
On February 23, 2021, a case captioned Plymouth County Retirement System v. Apache Corporation, et al. was filed in the United States District Court for the Southern District of Texas (Houston Division) against the Company and certain current and former officers. The complaint, which is a shareholder lawsuit styled as a class action, alleges, among other things, that (1) the Company intentionally used unrealistic assumptions regarding the amount and composition of available oil and gas in Alpine High; (2) the Company did not have the proper infrastructure in place to safely and/or economically drill and/or transport those resources even if they existed in the amounts purported; (3) certain statements and omissions artificially inflated the value of the Company’s operations in the Permian Basin; and (4) as a result, the Company’s public statements were materially false and misleading. With no admission, concession, or finding of any fault, liability, or wrongdoing, but only to avoid the expense and uncertainty of litigation, the parties have agreed to a settlement resolving all claims made against the defendants by the class. The settlement agreement will be subject to court approval, and a hearing is expected to be held in the coming months. The settlement will not have a material effect on the Company’s financial position, results of operations, or liquidity and is subject to insurance coverage that companies have for these types of claims.
On February 21, 2023, a case captioned Steve Silverman, Derivatively and on behalf of Nominal Defendant APA Corp. v. John J. Christmann IV, et al. was filed in federal district court for the Southern District of Texas. Then, on July 21, 2023, a case captioned Yang-Li-Yu, Derivatively and on behalf of Nominal Defendant APA Corp. v. John J. Christmann IV, et al. was filed in federal district court for the Southern District of Texas. These cases have now been consolidated as In Re APA Corporation Derivative Litigation, Case No. 4:23-cv-00636 in the Southern District of Texas and purport to be derivative actions brought against senior management and Company directors over many of the same allegations included in the Plymouth County Retirement System matter and asserts claims of (1) breach of fiduciary duty; (2) waste of corporate assets; and (3) unjust enrichment. The defendants filed a motion to dismiss the consolidated lawsuits, which is fully briefed and will remain pending following settlement of the Plymouth County Retirement System case noted above.
Environmental Matters
As of March 31, 2024, the Company had an undiscounted reserve for environmental remediation of approximately $5 million.
On September 11, 2020, the Company received a Notice of Violation and Finding of Violation, and accompanying Clean Air Act Information Request, from the U.S. Environmental Protection Agency (EPA) following site inspections in April 2019 at several of the Company’s oil and natural gas production facilities in Lea and Eddy Counties, New Mexico. Then on December 29, 2020, the Company received a Notice of Violation and Opportunity to Confer, and accompanying Clean Air Act Information Request, from the EPA following helicopter flyovers in September 2019 of several of the Company’s oil and natural gas production facilities in Reeves County, Texas. The notices and information requests involved alleged emissions control and reporting violations. The Company cooperated with the EPA, responded to the information requests, and negotiated and entered into a consent decree to resolve the alleged violations in both New Mexico and Texas, which has been approved and entered by the Court. The consideration provided by the Company in connection with the consent decree, which includes a $4 million payment, will not have a material impact on the Company’s financial position.
The Company is not aware of any environmental claims existing as of March 31, 2024, that have not been provided for or would otherwise have a material impact on its financial position, results of operations, or liquidity. There can be no assurance, however, that current regulatory requirements will not change or past non-compliance with environmental laws will not be discovered on the Company’s properties.
18


Potential Decommissioning Obligations on Sold Properties
In 2013, Apache sold its Gulf of Mexico (GOM) Shelf operations and properties and its GOM operating subsidiary, GOM Shelf LLC (GOM Shelf) to Fieldwood Energy LLC (Fieldwood). Fieldwood assumed the obligation to decommission the properties held by GOM Shelf and the properties acquired from Apache and its other subsidiaries (collectively, the Legacy GOM Assets). On February 14, 2018, Fieldwood filed for (and subsequently emerged from) Chapter 11 bankruptcy protection. On August 3, 2020, Fieldwood filed for (and subsequently emerged from) Chapter 11 bankruptcy protection for a second time. Upon emergence from this second bankruptcy, the Legacy GOM Assets were separated into a standalone company, which was subsequently merged into GOM Shelf. Under GOM Shelf’s limited liability company agreement, the proceeds of production of the Legacy GOM Assets are to be used to fund the operation of GOM Shelf and the decommissioning of Legacy GOM Assets. Pursuant to the terms of the original transaction, as amended in the first bankruptcy, the securing of the asset retirement obligations for the Legacy GOM Assets as and when Apache is required to perform or pay for any such decommissioning was accomplished through the posting of letters of credit in favor of Apache (Letters of Credit), the provision of two bonds (Bonds) in favor of Apache, and the establishment of a trust account of which Apache was a beneficiary and which was funded by net profits interests (NPIs) depending on future oil prices. In addition, after such sources have been exhausted, Apache agreed upon resolution of GOM Shelf’s second bankruptcy to provide a standby loan to GOM Shelf of up to $400 million to perform decommissioning, with such standby loan secured by a first and prior lien on the Legacy GOM Assets.
By letter dated April 5, 2022 (replacing two earlier letters) and by subsequent letter dated March 1, 2023, GOM Shelf notified the Bureau of Safety and Environmental Enforcement (BSEE) that it was unable to fund the decommissioning obligations that it was obligated to perform on certain of the Legacy GOM Assets. As a result, Apache and other current and former owners in these assets have received orders from BSEE and demands from third parties to decommission certain of the Legacy GOM Assets included in GOM Shelf’s notifications to BSEE. Apache expects to receive similar orders and demands on the other Legacy GOM Assets included in GOM Shelf’s notification letters. Apache has also received orders to decommission other Legacy GOM Assets that were not included in GOM Shelf’s notification letters. Further, Apache anticipates that GOM Shelf may send additional such notices to BSEE in the future and that it may receive additional orders from BSEE requiring it to decommission other Legacy GOM Assets.
On June 21, 2023, two sureties that issued Bonds directly to Apache and two sureties that issued bonds to the issuing bank on the Letters of Credit filed suit against Apache in a case styled Zurich American Insurance Company, HCC International Insurance Company PLC, Philadelphia Indemnity Insurance Company and Everest Reinsurance Company (Insurers) v. Apache Corporation, Cause No. 2023-38238 in the 281st Judicial District Court, Harris County Texas. The sureties sought to prevent Apache from drawing on the Bonds and Letters of Credit and further alleged that they are discharged from their reimbursement obligations related to decommissioning costs and are entitled to other relief. On July 20, 2023, the 281st Judicial District Court denied the Insurers’ request for a temporary injunction. On July 26, 2023, Apache removed the suit to the United States Bankruptcy Court for the Southern District of Texas (Houston Division) which subsequently held that the sureties’ state court lawsuit violated the terms of the Bankruptcy Confirmation Order and is void. Since the time the sureties filed their state court lawsuit, Apache has drawn down the entirety of the Letters of Credit. Apache has also sought to draw down on the Bonds; however, the sureties refuse to pay such Bond draws. Apache is vigorously pursuing its claims against the sureties.
As of March 31, 2024, the Company has recorded a $186 million asset, which represents the remaining amount the Company expects to be reimbursed from security related to these decommissioning costs.
The Company has recorded contingent liabilities in the amounts of $847 million and $824 million as of March 31, 2024 and December 31, 2023, respectively, representing the estimated costs of decommissioning it may be required to perform on legacy GOM properties previously sold to Fieldwood and other GOM operators. During the first quarter of 2024, the Company recognized $66 million of “Loss on previously sold Gulf of Mexico properties,” which includes increases of $33 million related to orders received during the period from BSEE to decommission properties previously sold to Cox Operating LLC. The Company recognized no losses for decommissioning previously sold properties during the first quarter of 2023. There have been no other changes in estimates from December 31, 2023 that would have a material impact on the Company’s financial position, results of operations, or liquidity.
19


12.    CAPITAL STOCK
Net Income per Common Share
The following table presents a reconciliation of the components of basic and diluted net income per common share in the consolidated financial statements:
 
For the Quarter Ended March 31,
 20242023
 IncomeSharesPer ShareIncomeSharesPer Share
 (In millions, except per share amounts)
Basic:
Income attributable to common stock$132 302 $0.44 $242 311 $0.78 
Effect of Dilutive Securities:
Stock compensation awards
$  $ $ 1 $ 
Diluted:
Income attributable to common stock$132 302 $0.44 $242 312 $0.78 
The diluted earnings per share calculation excludes options and restricted stock units that were anti-dilutive of 2.1 million and 2.4 million during the first quarters of 2024 and 2023, respectively.
Stock Repurchase Program
During the fourth quarter of 2021, the Company’s Board of Directors authorized the purchase of 40 million shares of the Company’s common stock. During the third quarter of 2022, the Company's Board of Directors authorized the purchase of an additional 40 million shares of the Company's common stock.
In the first quarter of 2024, the Company repurchased approximately 3.0 million shares at an average price of $33.27 per share, and as of March 31, 2024, the Company had remaining authorization to repurchase up to 40.9 million shares. In the first quarter of 2023, the Company repurchased 3.7 million shares at an average price of $38.93 per share.
The Company is not obligated to acquire any additional shares. Shares may be purchased either in the open market or through privately negotiated transactions.
Common Stock Dividend
For the quarters ended March 31, 2024 and 2023, the Company paid $76 million and $78 million, respectively, in dividends on its common stock.
20


13.    BUSINESS SEGMENT INFORMATION
As of March 31, 2024, the Company’s consolidated subsidiaries are engaged in exploration and production (Upstream) activities across three operating segments: the U.S., Egypt, and North Sea. The Company’s Upstream business explores for, develops, and produces crude oil, natural gas, and natural gas liquids. The Company also has active exploration and planned appraisal operations ongoing in Suriname, as well as interests in Uruguay and other international locations that may, over time, result in reportable discoveries and development opportunities. Financial information for each segment is presented below:
U.S.
Egypt(1)
North SeaIntersegment
Eliminations
& Other
Total(4)
For the Quarter Ended March 31, 2024
(In millions)
Revenues:
Oil revenues$588 $657 $187 $ $1,432 
Natural gas revenues57 77 42  176 
Natural gas liquids revenues131  9  140 
Oil, natural gas, and natural gas liquids production revenues776 734 238  1,748 
Purchased oil and gas sales203    203 
979 734 238  1,951 
Operating Expenses:
Lease operating expenses140 120 78  338 
Gathering, processing, and transmission64 6 14  84 
Purchased oil and gas costs163    163 
Taxes other than income57    57 
Exploration70 31  47 148 
Depreciation, depletion, and amortization214 145 71  430 
Asset retirement obligation accretion15  25  40 
723 302 188 47 1,260 
Operating Income (Loss)(2)
$256 $432 $50 $(47)691 
Other Income (Expense):
Derivative instrument losses, net
(4)
Loss on previously sold Gulf of Mexico properties(66)
Gain on divestitures, net7 
Other, net15 
General and administrative(93)
Transaction, reorganization, and separation(27)
Financing costs, net(76)
Income Before Income Taxes$447 
Total Assets(3)
$8,887 $3,651 $1,897 $517 $14,952 

21


U.S.
Egypt(1)
North SeaIntersegment
Eliminations
& Other
Total(4)
For the Quarter Ended March 31, 2023
(In millions)
Revenues:
Oil revenues$486 $629 $282 $ $1,397 
Natural gas revenues89 93 60  242 
Natural gas liquids revenues120  10  130 
Oil, natural gas, and natural gas liquids production revenues695 722 352  1,769 
Purchased oil and gas sales239    239 
934 722 352  2,008 
Operating Expenses:
Lease operating expenses147 97 77  321 
Gathering, processing, and transmission60 7 11  78 
Purchased oil and gas costs216    216 
Taxes other than income52    52 
Exploration3 36 5 8 52 
Depreciation, depletion, and amortization151 123 58  332 
Asset retirement obligation accretion10  18  28 
639 263 169 8 1,079 
Operating Income (Loss)(2)
$295 $459 $183 $(8)929 
Other Income (Expense):
Derivative instrument gains, net
53 
Gain on divestitures, net
1 
Other, net(32)
General and administrative(65)
Transaction, reorganization, and separation(4)
Financing costs, net(72)
Income Before Income Taxes$810 
Total Assets(3)
$7,525 $3,334 $1,836 $518 $13,213 
(1)Includes oil and gas production revenue that will be paid as taxes by EGPC on behalf of the Company for the quarters ended March 31, 2024 and 2023 of:
For the Quarter Ended March 31,
 20242023
(In millions)
Oil$174 $172 
Natural gas21 26 
(2)Operating income of U.S. includes leasehold impairments of $10 million for the first quarter of 2024.
Operating income of U.S. and North Sea includes leasehold impairments of $2 million and $3 million, respectively, for the first quarter of 2023.
(3)Intercompany balances are excluded from total assets.
(4)Includes noncontrolling interests in Egypt.

22


ITEM 2.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion relates to APA Corporation (APA or the Company) and its consolidated subsidiaries and should be read together with the Company’s Consolidated Financial Statements and accompanying notes included in Part I, Item 1—Financial Statements of this Quarterly Report on Form 10-Q, as well as related information set forth in the Company’s Consolidated Financial Statements, accompanying Notes to Consolidated Financial Statements, and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
Overview
APA is an independent energy company that owns consolidated subsidiaries that explore for, develop, and produce natural gas, crude oil, and natural gas liquids (NGLs). The Company’s upstream business has oil and gas operations in three geographic areas: the U.S., Egypt, and offshore the U.K. in the North Sea (North Sea). APA also has active exploration and appraisal operations ongoing in Suriname, as well as interests in Uruguay and other international locations that may, over time, result in reportable discoveries and development opportunities. As a holding company, APA Corporation’s primary assets are its ownership interests in its subsidiaries.
APA believes energy underpins global progress, and the Company wants to be a part of the solution as society works to meet growing global demand for reliable and affordable energy. APA strives to meet those challenges while creating value for all its stakeholders.
Uncertainties in the global supply chain and financial markets, including the impact of ongoing international conflicts, inflation and rising interest rates, and actions taken by foreign oil and gas producing nations, including OPEC+, continue to impact oil supply and demand and contribute to commodity price volatility. Despite these uncertainties, the Company remains committed to its longer-term objectives: (1) to invest for long-term returns in pursuit of moderate, sustainable production growth; (2) to strengthen the balance sheet to underpin the generation of cash flow in excess of its upstream exploration, appraisal, and development capital program that can be directed to debt reduction, share repurchases, and other return of capital to its shareholders; and (3) to responsibly manage its cost structure regardless of the oil price environment.
The Company closely monitors hydrocarbon pricing fundamentals to reallocate capital as part of its ongoing planning process. APA’s diversified asset portfolio and operational flexibility provide the Company the ability to timely respond to near-term price volatility and effectively manage its investment programs accordingly. For additional detail on the Company’s forward capital investment outlook, refer to “Capital Resources and Liquidity” below.
The Company remains committed to its capital return framework for equity holders to participate more directly and materially in cash returns.
The Company believes returning 60 percent of cash flow over capital investment creates a good balance for providing near-term cash returns to shareholders while still recognizing the importance of longer-term balance sheet strengthening.
The Company’s quarterly dividend of $0.25 per share.
Beginning in the fourth quarter of 2021 and through the end of the first quarter of 2024, the Company has repurchased 79.1 million shares of the Company’s common stock.
Financial and Operational Highlights
In the first quarter of 2024, the Company reported net income attributable to common stock of $132 million, or $0.44 per diluted share, compared to net income of $242 million, or $0.78 per diluted share, in the first quarter of 2023. Results for the first quarter of 2024 compared to the first quarter of 2023 were primarily impacted by higher DD&A and dry hole expense and an upward revision on decommissioning costs for its previously sold Gulf of Mexico assets in the current-year period, partially offset by lower deferred income tax expense.
The Company generated $368 million of cash from operating activities during the first three months of 2024, 10 percent higher than the first three months of 2023. APA’s higher operating cash flows for the first three months of 2024 were primarily driven by timing of working capital items. The Company repurchased 3.0 million shares of its common stock for $101 million and paid $76 million in dividends to APA common stockholders during the first three months of 2024.
23


On April 1, 2024, APA completed its acquisition of Callon Petroleum Company (Callon) in an all-stock transaction valued at approximately $4.5 billion, inclusive of Callon’s debt (the Callon acquisition). The transaction was approved by APA and Callon shareholders at special meetings held on March 27, 2024. The acquired assets include approximately 120,000 net acres in the Delaware Basin and 25,000 net acres in the Midland Basin. Callon’s fourth-quarter 2023 production was 103,000 BOE per day, comprising 58 percent oil and 80 percent liquids.
Subject to the terms of the merger agreement, each share of Callon common stock was converted into the right to receive 1.0425 shares of APA common stock, with cash in lieu of fractional shares. As a result, APA issued approximately 70 million shares of APA common stock in connection with the transaction, and following the acquisition, Callon common stock is no longer listed for trading on the NYSE.
Key operational highlights include:
United States
Daily boe production from the Company’s U.S. assets accounted for 55 percent of its total production during the first quarter of 2024 and increased 6 percent from the first quarter of 2023. Daily oil production from the Company’s U.S. assets increased 16 percent from the first quarter of 2023. During the first quarter of 2024, the Company averaged six drilling rigs in the U.S., including three rigs in the Southern Midland Basin and three rigs in the Delaware Basin, and drilled and brought online 12 operated wells in the quarter. The Company’s core Permian Basin development program continues to represent key growth areas for the U.S. assets.
The Company expects to average 10 drilling rigs in the U.S. for the remainder of 2024 as it integrates Callon operations, including contracting and logistics, well planning and design, drilling and completions, and facility construction.
International
In Egypt, the Company continued its drilling and workover activity with a focus on oil production. The Company averaged 17 drilling rigs and drilled 17 new productive wells during the first quarter of 2024. During the same period, the Company averaged 21 workover rigs as it continues to align its drilling and workover activity with a goal of driving improved capital efficiency. First quarter 2024 gross and net equivalent production in the Company’s Egypt assets decreased 8 percent from the first quarter of 2023, while daily oil production remained essentially flat.
The Company suspended all new drilling activity in the North Sea during the second quarter of 2023. The Company’s investment program in the North Sea is now directed toward safety, base production management, and asset maintenance and integrity.
24


Results of Operations
Oil, Natural Gas, and Natural Gas Liquids Production Revenues
Revenue
The Company’s production revenues and respective contribution to total revenues by country were as follows:
 
For the Quarter Ended
March 31,
 20242023
$ Value%
Contribution
$ Value%
Contribution
 ($ in millions)
Oil Revenues:
United States$588 41 %$486 35 %
Egypt(1)
657 46 %629 45 %
North Sea187 13 %282 20 %
Total(1)
$1,432 100 %$1,397 100 %
Natural Gas Revenues:
United States$57 32 %$89 37 %
Egypt(1)
77 44 %93 38 %
North Sea42 24 %60 25 %
Total(1)
$176 100 %$242 100 %
NGL Revenues:
United States$131 94 %$120 92 %
North Sea%10 %
Total(1)
$140 100 %$130 100 %
Oil and Gas Revenues:
United States$776 44 %$695 39 %
Egypt(1)
734 42 %722 41 %
North Sea238 14 %352 20 %
Total(1)
$1,748 100 %$1,769