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In spite of these and other operating achievements, the precipitous decline in commodity prices negatively impacted our earnings and cash flow compared to the prior year. We reported a $23.1 billion loss attributable to common stock, or $61.20 per diluted common share, compared to a loss of $5.4 billion, or $14.06 per share in 2014. Notable items impacting our earnings that were driven by the decline in commodity price and refocusing our asset portfolio include the following: For the Year Ended December 31, 2015 2014 (In millions)

Oil and gas property write-downs, net of tax(1) . . . . . . . . . . . . . . Tax adjustments and valuation allowances . . . . . . . . . . . . . . . . . . Impairments, net of tax(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Discontinued operations, net of tax . . . . . . . . . . . . . . . . . . . . . . . Transaction, reorganization, and separation costs, net of tax . . . . Contract termination charges, net of tax . . . . . . . . . . . . . . . . . . . . Loss on extinguishment of debt, net of tax . . . . . . . . . . . . . . . . . . Divested non-strategic assets, net of tax . . . . . . . . . . . . . . . . . . . . (1)

$16,526 4,200 1,362 771 86 57 25 (38)

$3,068 1,005 1,752 1,588 44 35 116

Excludes Egypt noncontrolling interest impact.

2016 Outlook We believe our proactive actions taken in 2015 and previous years have positioned us to be flexible and rapid in our responses to the challenges faced in this difficult and unpredictable environment. We are prepared for a potentially “lower for longer” commodity price cycle, while retaining our ability to dynamically manage our activity levels as commodity price and service costs dictate. To ensure that we sustain this position, we have reduced our activity with a target of achieving “cash flow neutrality.” This means our capital program and dividends will be funded through cash from operations and a limited amount of non-core asset sales, without external financing. We currently plan capital investments in 2016 in the range of $1.4 to $1.8 billion, a reduction of over 60 percent from 2015 levels. Approximately $700 million to $800 million will be allocated to North American onshore plays, with the balance to international and U.S. offshore regions. This budget may be adjusted with commodity price movements throughout the year. Our budgeted amounts exclude expenditures attributable to a one-third noncontrolling interest in Egypt. Our capital budget for 2016 has been, and will be, allocated on a prioritized basis as follows: (i) maintain assets and keeping them running efficiently and preserve mineral rights and leases, (ii) further optimize and build high quality inventory for the future, (iii) conduct certain mediumcycle, high impact exploration activities, and (iv) conduct limited-scale development activities that remain economically robust at these low prices. In addition, we will continue our overhead and lease operating expenses cost reduction efforts in order to position Apache for an extended low commodity price environment. Given the further curtailment of capital spending, we are projecting a production decline of 7 percent to 11 percent in 2016 compared to 2015 production levels after adjusting for divestitures and volumes associated with Egypt’s noncontrolling interest and tax impacts. However, we believe that if commodity prices improve from current market levels, we will be able to increase our capital plan accordingly with a greater focus on growth in our onshore North America assets.

31

Apache 2015 Summary Annual Report  

Adapting to a changing environment

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