Stock Analysis on Net
Stock Analysis on Net

Apache Corp. (NYSE:APA)

This company has been moved to the archive! The financial data has not been updated since August 4, 2016.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Apache Corp., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Federal 363 (10) (29) (150) 64
State 41 1 — — 2
Foreign (95) 1,151 1,694 2,349 2,197
Current taxes 309 1,142 1,665 2,199 2,263
Federal (4,157) 961 509 596 656
State (90) (43) 44 10 17
Foreign (1,531) (423) (290) 71 573
Deferred taxes (5,778) 495 263 677 1,246
Provision (benefit) for income taxes from continuing operations (5,469) 1,637 1,928 2,876 3,509

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

Item Description The company
Current taxes Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Apache Corp. current taxes decreased from 2013 to 2014 and from 2014 to 2015.
Deferred taxes Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Apache Corp. deferred taxes increased from 2013 to 2014 but then decreased significantly from 2014 to 2015.
Provision (benefit) for income taxes from continuing operations Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Apache Corp. provision (benefit) for income taxes from continuing operations decreased from 2013 to 2014 and from 2014 to 2015.

Components of Deferred Tax Assets and Liabilities

Apache Corp., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Deferred income 20 — 153 33 89
U.S. and state net operating loss carryforwards 329 1,333 900 932 236
Foreign net operating loss carryforwards 1,507 366 156 61 55
Tax credits and other tax incentives 82 42 66 78 66
Foreign tax credit carryforwards 2,090 — — — —
Accrued expenses and liabilities 136 68 162 2 90
Asset retirement obligation 1,037 1,202 1,231 1,677 —
Property and equipment 3,880 — — — —
Deferred tax assets 9,081 3,011 2,668 2,783 536
Valuation allowance (6,530) (1,069) (651) (419) (60)
Net deferred tax assets 2,551 1,942 2,017 2,364 476
Other (1) (19) (29) (23) (21)
Deferred income (140) (24) — — —
Investment in foreign subsidiaries (1,903) (1,654) — — —
Property and equipment (1,574) (8,986) (10,224) (10,213) (7,443)
Deferred tax liabilities (3,618) (10,683) (10,253) (10,236) (7,464)
Net deferred income tax asset (liability) (1,067) (8,741) (8,236) (7,872) (6,988)

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

Item Description The company
Deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Apache Corp. deferred tax assets increased from 2013 to 2014 and from 2014 to 2015.
Net deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Apache Corp. net deferred tax assets decreased from 2013 to 2014 but then increased from 2014 to 2015 exceeding 2013 level.
Net deferred income tax asset (liability) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Apache Corp. net deferred income tax asset (liability) decreased from 2013 to 2014 but then increased from 2014 to 2015 exceeding 2013 level.

Deferred Tax Assets and Liabilities, Classification

Apache Corp., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Current deferred tax asset — 769 134 — —
Noncurrent deferred tax asset (included in Deferred charges and other) 5 17 33 — —
Current deferred tax liability (included in Other current liabilities) — 28 39 — —
Noncurrent deferred tax liability 1,072 9,499 8,364 8,024 7,197

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

Item Description The company
Noncurrent deferred tax asset (included in Deferred charges and other) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Apache Corp. noncurrent deferred tax asset (included in Deferred charges and other) decreased from 2013 to 2014 and from 2014 to 2015.
Noncurrent deferred tax liability Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Apache Corp. noncurrent deferred tax liability increased from 2013 to 2014 but then decreased significantly from 2014 to 2015.

Adjustments to Financial Statements: Removal of Deferred Taxes

Apache Corp., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Adjustment to Current Assets
Current assets (as reported) 3,752 6,415 6,366 4,962 4,803
Less: Current deferred tax assets, net — 769 134 — —
Current assets (adjusted) 3,752 5,646 6,232 4,962 4,803
Adjustment to Total Assets
Total assets (as reported) 18,842 55,952 61,637 60,737 52,051
Less: Current deferred tax assets, net — 769 134 — —
Less: Noncurrent deferred tax assets, net 5 17 33 — —
Total assets (adjusted) 18,837 55,166 61,470 60,737 52,051
Adjustment to Current Liabilities
Current liabilities (as reported) 1,841 3,664 4,700 5,536 4,963
Less: Current deferred tax liabilities, net — 28 39 — —
Current liabilities (adjusted) 1,841 3,636 4,661 5,536 4,963
Adjustment to Total Liabilities
Total liabilities (as reported) 14,614 27,815 26,244 29,406 23,058
Less: Current deferred tax liabilities, net — 28 39 — —
Less: Noncurrent deferred tax liabilities, net 1,072 9,499 8,364 8,024 7,197
Total liabilities (adjusted) 13,542 18,288 17,841 21,382 15,861
Adjustment to Total Apache Shareholders’ Equity
Total Apache shareholders’ equity (as reported) 2,566 25,937 33,396 31,331 28,993
Less: Net deferred tax assets (liabilities) (1,067) (8,741) (8,236) (7,872) (6,988)
Total Apache shareholders’ equity (adjusted) 3,633 34,678 41,632 39,203 35,981
Adjustment to Net Income (loss) Attributable To Apache Shareholders
Net income (loss) attributable to Apache shareholders (as reported) (23,119) (5,403) 2,232 2,001 4,584
Add: Deferred income tax expense (benefit) (5,778) 495 263 677 1,246
Net income (loss) attributable to Apache shareholders (adjusted) (28,897) (4,908) 2,495 2,678 5,830

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

Apache Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Apache Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Current Ratio
Reported current ratio 2.04 1.75 1.35 0.90 0.97
Adjusted current ratio 2.04 1.55 1.34 0.90 0.97
Net Profit Margin
Reported net profit margin -362.20% -39.30% 13.61% 11.81% 27.27%
Adjusted net profit margin -452.72% -35.70% 15.21% 15.80% 34.68%
Total Asset Turnover
Reported total asset turnover 0.34 0.25 0.27 0.28 0.32
Adjusted total asset turnover 0.34 0.25 0.27 0.28 0.32
Financial Leverage
Reported financial leverage 7.34 2.16 1.85 1.94 1.80
Adjusted financial leverage 5.18 1.59 1.48 1.55 1.45
Return on Equity (ROE)
Reported ROE -900.97% -20.83% 6.68% 6.39% 15.81%
Adjusted ROE -795.40% -14.15% 5.99% 6.83% 16.20%
Return on Assets (ROA)
Reported ROA -122.70% -9.66% 3.62% 3.29% 8.81%
Adjusted ROA -153.41% -8.90% 4.06% 4.41% 11.20%

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

Financial ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Apache Corp. adjusted current ratio improved from 2013 to 2014 and from 2014 to 2015.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Apache Corp. adjusted net profit margin ratio deteriorated from 2013 to 2014 and from 2014 to 2015.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Apache Corp. adjusted total asset turnover ratio deteriorated from 2013 to 2014 but then improved from 2014 to 2015 exceeding 2013 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Apache Corp. adjusted financial leverage ratio increased from 2013 to 2014 and from 2014 to 2015.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Apache Corp. adjusted ROE deteriorated from 2013 to 2014 and from 2014 to 2015.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Apache Corp. adjusted ROA deteriorated from 2013 to 2014 and from 2014 to 2015.

Apache Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Current Ratio

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
As Reported
Selected Financial Data (US$ in millions)
Current assets 3,752 6,415 6,366 4,962 4,803
Current liabilities 1,841 3,664 4,700 5,536 4,963
Liquidity Ratio
Current ratio1 2.04 1.75 1.35 0.90 0.97
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted current assets 3,752 5,646 6,232 4,962 4,803
Adjusted current liabilities 1,841 3,636 4,661 5,536 4,963
Liquidity Ratio
Adjusted current ratio2 2.04 1.55 1.34 0.90 0.97

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

2015 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 3,752 ÷ 1,841 = 2.04

2 Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 3,752 ÷ 1,841 = 2.04

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Apache Corp. adjusted current ratio improved from 2013 to 2014 and from 2014 to 2015.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Apache shareholders (23,119) (5,403) 2,232 2,001 4,584
Oil and gas production revenues 6,383 13,749 16,402 16,947 16,810
Profitability Ratio
Net profit margin1 -362.20% -39.30% 13.61% 11.81% 27.27%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Apache shareholders (28,897) (4,908) 2,495 2,678 5,830
Oil and gas production revenues 6,383 13,749 16,402 16,947 16,810
Profitability Ratio
Adjusted net profit margin2 -452.72% -35.70% 15.21% 15.80% 34.68%

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

2015 Calculations

1 Net profit margin = 100 × Net income (loss) attributable to Apache shareholders ÷ Oil and gas production revenues
= 100 × -23,119 ÷ 6,383 = -362.20%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to Apache shareholders ÷ Oil and gas production revenues
= 100 × -28,897 ÷ 6,383 = -452.72%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Apache Corp. adjusted net profit margin ratio deteriorated from 2013 to 2014 and from 2014 to 2015.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
As Reported
Selected Financial Data (US$ in millions)
Oil and gas production revenues 6,383 13,749 16,402 16,947 16,810
Total assets 18,842 55,952 61,637 60,737 52,051
Activity Ratio
Total asset turnover1 0.34 0.25 0.27 0.28 0.32
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Oil and gas production revenues 6,383 13,749 16,402 16,947 16,810
Adjusted total assets 18,837 55,166 61,470 60,737 52,051
Activity Ratio
Adjusted total asset turnover2 0.34 0.25 0.27 0.28 0.32

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

2015 Calculations

1 Total asset turnover = Oil and gas production revenues ÷ Total assets
= 6,383 ÷ 18,842 = 0.34

2 Adjusted total asset turnover = Oil and gas production revenues ÷ Adjusted total assets
= 6,383 ÷ 18,837 = 0.34

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Apache Corp. adjusted total asset turnover ratio deteriorated from 2013 to 2014 but then improved from 2014 to 2015 exceeding 2013 level.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
As Reported
Selected Financial Data (US$ in millions)
Total assets 18,842 55,952 61,637 60,737 52,051
Total Apache shareholders’ equity 2,566 25,937 33,396 31,331 28,993
Solvency Ratio
Financial leverage1 7.34 2.16 1.85 1.94 1.80
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 18,837 55,166 61,470 60,737 52,051
Adjusted total Apache shareholders’ equity 3,633 34,678 41,632 39,203 35,981
Solvency Ratio
Adjusted financial leverage2 5.18 1.59 1.48 1.55 1.45

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

2015 Calculations

1 Financial leverage = Total assets ÷ Total Apache shareholders’ equity
= 18,842 ÷ 2,566 = 7.34

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Apache shareholders’ equity
= 18,837 ÷ 3,633 = 5.18

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Apache Corp. adjusted financial leverage ratio increased from 2013 to 2014 and from 2014 to 2015.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Apache shareholders (23,119) (5,403) 2,232 2,001 4,584
Total Apache shareholders’ equity 2,566 25,937 33,396 31,331 28,993
Profitability Ratio
ROE1 -900.97% -20.83% 6.68% 6.39% 15.81%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Apache shareholders (28,897) (4,908) 2,495 2,678 5,830
Adjusted total Apache shareholders’ equity 3,633 34,678 41,632 39,203 35,981
Profitability Ratio
Adjusted ROE2 -795.40% -14.15% 5.99% 6.83% 16.20%

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

2015 Calculations

1 ROE = 100 × Net income (loss) attributable to Apache shareholders ÷ Total Apache shareholders’ equity
= 100 × -23,119 ÷ 2,566 = -900.97%

2 Adjusted ROE = 100 × Adjusted net income (loss) attributable to Apache shareholders ÷ Adjusted total Apache shareholders’ equity
= 100 × -28,897 ÷ 3,633 = -795.40%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Apache Corp. adjusted ROE deteriorated from 2013 to 2014 and from 2014 to 2015.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Apache shareholders (23,119) (5,403) 2,232 2,001 4,584
Total assets 18,842 55,952 61,637 60,737 52,051
Profitability Ratio
ROA1 -122.70% -9.66% 3.62% 3.29% 8.81%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Apache shareholders (28,897) (4,908) 2,495 2,678 5,830
Adjusted total assets 18,837 55,166 61,470 60,737 52,051
Profitability Ratio
Adjusted ROA2 -153.41% -8.90% 4.06% 4.41% 11.20%

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

2015 Calculations

1 ROA = 100 × Net income (loss) attributable to Apache shareholders ÷ Total assets
= 100 × -23,119 ÷ 18,842 = -122.70%

2 Adjusted ROA = 100 × Adjusted net income (loss) attributable to Apache shareholders ÷ Adjusted total assets
= 100 × -28,897 ÷ 18,837 = -153.41%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Apache Corp. adjusted ROA deteriorated from 2013 to 2014 and from 2014 to 2015.