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ITEM 9B. OTHER INFORMATION The registrant elects to disclose under this Item 9B information otherwise disclosable in a report on Form 8-K for an event which occurred on February 22, 2016. Disclosure for the event, which otherwise would be reportable on Form 8-K under “Item 1.01 Entry into a Material Definitive Agreement” and “Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant”, is as follows: On February 22, 2016, Apache Corporation, a Delaware corporation (“Apache”), entered into a Credit Agreement among Apache, the lenders party thereto, the issuing banks party thereto, J.P. Morgan Europe Limited, as Administrative Agent, HSBC Bank USA, National Association, Royal Bank of Canada, The Bank of Nova Scotia, The Toronto-Dominion Bank, New York Branch, and Bank of Montreal, as Co-Syndication Agents, and Deutsche Bank AG New York Branch and Socie´te´ Ge´ne´rale, as Co-Documentation Agents (the “LC Facility”). The LC Facility provides for a three-year letter of credit facility and aggregate commitments of 900.0 million pounds sterling (“GBP”), with rights to increase commitments up to an aggregate GBP1.075 billion. Apache may increase commitments by adding additional lenders or by allowing one or more existing lenders to increase their commitments by up to an aggregate GBP175.0 million. The facility is available for the issuance of letters of credit denominated in GBP, US Dollars, Canadian Dollars, and in any other foreign currency consented to by an issuing bank. The facility also is available for loans in GBP, US Dollars, and Canadian Dollars to cash collateralize letters of credit or obligations to provide letters of credit, in each case, to the extent letters of credit are unavailable under the facility. The aggregate undrawn amount of outstanding letters of credit, unreimbursed drawings under issued letters of credit, and borrowings outstanding at any time under the LC Facility may not exceed the total commitments thereunder at that time. Borrowers under the LC Facility may include Apache and certain subsidiaries organized under the laws of, or domiciled in, the United States, Canada, England and Wales, the United Kingdom, or the Cayman Islands (each a “Borrower”). Each Borrower may obtain letters of credit and borrow, prepay, and reborrow loans, and Apache may obtain letters of credit for the account its subsidiaries, in each case subject to representations and warranties, covenants, and events of default that are substantially similar to those in Apache’s existing 2015 revolving credit facility. All amounts outstanding under the LC Facility are due February 22, 2019, provided that Apache may once request that the maturity date be extended for one successive period expiring one year from the then scheduled maturity date. No lender is obligated to consent to any extension; however, effective on or before the original maturity date, Borrower may elect to replace any non-consenting lender and proceed with the extension as to remaining commitments, provided that lenders having at least 51% of the aggregate total commitments have agreed to the requested extension. All borrowings under the LC Facility bear interest at one of the following rate options, as selected by Borrower: •

A base rate plus a margin, with the (i) base rate being a rate per annum equal to the greatest of (a) the prime rate as announced by the Administrative Agent, (b) the federal funds rate plus 0.50%, and (c) the London Interbank Offered Rate (“LIBOR”) for a one-month interest period plus 1.0%, and (ii) margin (“Base Rate Margin”) being a rate per annum that varies from 0.0% to 0.65% based on the rating for Apache’s senior, unsecured, non-credit enhanced, long-term indebtedness for borrowed money (“LongTerm Debt Rating”); or

LIBOR plus a margin (“LIBOR Margin”) at a rate per annum varying from 0.69% to 1.65% based on Apache’s Long-Term Debt Rating. For LIBOR-based interest rates, Apache may select an interest period with respect to any currency of one, two, three or six months, or one week, and additionally with respect to GBP borrowings, one day. 56

Apache 2015 Summary Annual Report  

Adapting to a changing environment

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