Page 57

Net Cash Provided by Continuing Operating Activities Operating cash flows are our primary source of capital and liquidity and are impacted, both in the short-term and the long-term, by volatile oil and natural gas prices. The factors that determine operating cash flows are largely the same as those that affect net earnings, with the exception of non-cash expenses such as DD&A, asset retirement obligation (ARO) accretion, oil and gas property write-downs, asset impairments, and deferred income tax expense, which affect earnings but do not affect cash flows. Net cash provided by continuing operating activities for 2015 totaled $2.8 billion, down $4.7 billion from 2014. The decrease primarily reflects lower commodity prices and divestitures. For a detailed discussion of commodity prices, production, and expenses, please see “Results of Operations” in this Item 7. For additional detail on the changes in operating assets and liabilities and the non-cash expenses which do not impact net cash provided by operating activities, please see the Statement of Consolidated Cash Flows in the Consolidated Financial Statements set forth in Part IV, Item 15 of this Form 10-K. Australia Discontinued Operations During 2015, Apache completed the sale of its Wheatstone LNG project and associated upstream assets to Woodside for total proceeds of $2.8 billion. During 2015, Apache also completed the sale of its Australian subsidiary AEL to a consortium of private equity funds managed by Macquarie Capital Group Limited and Brookfield Asset Management Inc. for total proceeds of $1.9 billion. The results of operations for the divested Australian assets and losses on disposal are classified as discontinued operations in all periods presented in this Annual Report on Form 10-K. In addition, Apache sold its 49 percent interest equity method investment in YPHPL for total cash proceeds of $391 million. Argentina Discontinued Operations During 2014, Apache completed the sale of our Argentina operations and properties to YPF Sociedad Anónima for cash proceeds of $800 million (subject to customary closing adjustments). The results of operations related to Argentina have been classified as discontinued operations in all periods presented in this Annual Report on Form 10-K. Net cash provided by Argentina discontinued operations for the first quarter of 2014 was $2 million. Asset Divestitures During 2015, 2014, and 2013, Apache had proceeds from divestitures totaling $1.1 billion, $3.1 billion, and $4.4 billion, respectively. For information regarding our acquisitions and divestitures, please see Note 2— Acquisitions and Divestitures in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Form 10-K. Egypt Noncontrolling Interest During 2013, Apache completed the sale of a one-third minority participation in its Egypt oil and gas business to Sinopec for $2.95 billion. Apache made cash distributions totaling $129 million and $140 million to Sinopec in 2015 and 2014, respectively. Capital Expenditures During 2015, capital spending for exploration and development (E&D) activities totaled $4.6 billion compared to $9.0 billion in the prior year. Apache’s E&D capital spending was primarily focused on our North American onshore region, where Apache operated an average of 19 drilling rigs. Apache’s investment in gas gathering, transmission, and processing facilities totaled $233 million and $881 million during 2015 and 2014, respectively. Apache’s investment in GTP was primarily for the Kitimat LNG project, which was divested in the second quarter of 2015. 46

Apache 2015 Summary Annual Report  

Adapting to a changing environment

Read more
Read more
Similar to
Popular now
Just for you