purposes. Apache has historically utilized available committed borrowing capacity, access to both debt and equity capital markets, and proceeds from the occasional sale of nonstrategic assets for liquidity and capital resources needs. We believe the liquidity and capital resource alternatives available to Apache, combined with internallygenerated cash flows, will be adequate to fund short-term and long-term operations, including our capital spending program, repayment of debt maturities, and any amount that may ultimately be paid in connection with commitments or contingencies. Off-Balance Sheet Arrangements Apache enters into customary agreements in the oil and gas industry for drilling rig commitments, firm transportation agreements, and other obligations as described below in “Contractual Obligations” in this Item 7. Other than the off-balance sheet arrangements described herein, Apache does not have any off-balance sheet arrangements with unconsolidated entities that are reasonably likely to materially affect our liquidity or capital resource positions. Contractual Obligations The following table summarizes the Company’s contractual obligations as of December 31, 2012. For additional information regarding these obligations, please see Note 6—Debt and Note 8—Commitments and Contingencies in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Form 10-K. Contractual Obligations (1) Debt, at face value . . . . . . . . . . . . Interest payments . . . . . . . . . . . . . Drilling rig commitments (2) . . . . . Purchase obligations (3) . . . . . . . . . Firm transportation agreements . . . . . . . . . . . . . . . . Office and related equipment . . . . Other operating lease obligations (4) . . . . . . . . . . . . . . Total Contractual Obligations . . . (1)
(2)
(3)
(4)
Note Reference Note 6 Note 6 Note 8 Note 8
Total $
2013 2014-2015 2016-2017 (In millions)
12,411 $ 11,007 896 2,588
991 $ 533 602 1,200
Note 8 Note 8
763 402
148 49
264 91
134 96
217 166
Note 8
754
209
316
205
24
28,821 $
3,732 $
$
350 1,035 289 1,182
3,527
$
$
1,390 $ 994 3 184
2018 & Beyond
3,006 $
9,680 8,445 2 22
18,556
This table does not include the Company’s liability for dismantlement, abandonment, and restoration costs of oil and gas properties, derivative liabilities, pension or postretirement benefit obligations, or tax reserves. For additional information regarding these liabilities, please see Notes 5, 3, 9, and 7, respectively, in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Form 10-K. This represents minimum future expenditures for drilling rig services. Apache’s expenditures for drilling rig services will exceed such minimum amounts to the extent Apache utilizes the drilling rigs subject to a particular contractual commitment for a period greater than the period set forth in the governing contract. Purchase obligations represent agreements to purchase goods or services that are enforceable, are legally binding, and specify all significant terms, including fixed and minimum quantities to be purchased; fixed, minimum or variable price provisions; and the appropriate timing of the transaction. These include minimum commitments associated with take-or-pay contracts, hydraulic fracturing service agreements, obtaining and processing seismic data, and contractual obligations to buy or build oil and gas plants and facilities, including LNG facilities. Other operating lease obligations pertain to other long-term exploration, development, and production activities. The Company has work-related commitments for oil and gas operations equipment, acreage maintenance commitments, FPSOs, and aircraft, among other things.
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