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Operating Expenses The table below presents a comparison of our expenses on an absolute dollar basis and an equivalent unit of production (boe) basis. Our discussion may reference expenses on a boe basis, on an absolute dollar basis or both, depending on context. All operating expenses include costs attributable to a noncontrolling interest in Egypt. Operating expenses for all periods exclude discontinued operations in Argentina and Australia.

2015 Depreciation, depletion and amortization: Oil and gas property and equipment Recurring . . . . . . . . . . . . . . . . . . . . . . . . $ Additional . . . . . . . . . . . . . . . . . . . . . . . Other assets . . . . . . . . . . . . . . . . . . . . . . . . Asset retirement obligation accretion . . . . . . Lease operating costs . . . . . . . . . . . . . . . . . . . Gathering and transportation costs . . . . . . . . Taxes other than income . . . . . . . . . . . . . . . . Impairments . . . . . . . . . . . . . . . . . . . . . . . . . . General and administrative expense . . . . . . . Transaction, reorganization, and separation costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Financing costs, net . . . . . . . . . . . . . . . . . . . . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

For the Year Ended December 31, 2014 2013 2015 2014 (In millions) (Per boe)

3,531 $ 25,517 324 145 1,854 211 282 1,920 377 132 299 34,592

4,388 $ 5,001 331 154 2,238 273 577 1,919 451 67 211

$

15,610

4,534 $ 995 337 211 2,650 288 772 481 33 229

$

10,530

18.08 $ 130.65 1.66 0.74 9.49 1.07 1.45 9.83 1.93 0.68 1.53

$

177.11

2013

20.36 $ 23.21 1.54 0.72 10.39 1.27 2.68 8.90 2.09 0.31 0.98

$

72.45

18.78 4.12 1.40 0.88 10.97 1.19 3.20 1.99 0.13 0.95

$

43.61

Recurring Depreciation, Depletion and Amortization (DD&A) 2015 vs. 2014 Oil and gas property recurring DD&A expense of $3.5 billion in 2015 decreased $857 million compared to 2014. The Company’s oil and gas property recurring DD&A rate decreased $2.28 per boe in 2015 compared to 2014. The primary factor driving both lower absolute dollar expense and lower DD&A per boe rates was the reduction in the Company’s oil and gas property carrying values resulting from significant property write-downs incurred during 2015. 2014 vs. 2013 Recurring full-cost depletion expense decreased $146 million on an absolute dollar basis: $412 million on lower volumes partially offset by an increase of $266 million from a higher average cost rate per boe. Our full-cost depletion rate increased $1.58 to $20.36 per boe reflecting increased cost for exploration and development activity over the prior years. Additional DD&A Under the full-cost method of accounting, the Company is required to review the carrying value of its proved oil and gas properties each quarter on a country-by-country basis. Under these rules, capitalized costs of oil and gas properties, net of accumulated DD&A and deferred income taxes, may not exceed the present value of estimated future net cash flows from proved oil and gas reserves, net of related tax effects and discounted 10 percent per annum and adjusted for cash flow hedges. Estimated future net cash flows are calculated using endof-period costs and an unweighted arithmetic average of commodity prices in effect on the first day of each of the previous 12 months, held flat for the life of the production, except where prices are defined by contractual arrangements.

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Apache 2015 Summary Annual Report