Apache Corp. (NYSE:APA)

The gross value of property and equipment experienced a period of growth between 2011 and 2014, peaking at 103,458 million US dollars before contracting to 93,825 million US dollars in 2015. This overall trend reflects an initial phase of capital expansion followed by a contraction in the total asset base.

Asset Composition Trends

Proved properties exhibited a consistent upward trajectory from 2011 through 2014, increasing from 67,805 million US dollars to 89,852 million US dollars, before remaining relatively stable in 2015. In contrast, unproved properties and properties under development peaked in 2012 at 8,754 million US dollars and declined sharply to 2,611 million US dollars by 2015, indicating a reduction in exploration and development activity.

Gathering, transmission, and processing facilities grew until 2013, reaching a high of 6,995 million US dollars, but subsequently fell to 1,052 million US dollars by 2015. This represents a significant reduction in midstream infrastructure assets over the final two years of the period.

Depreciation and Asset Valuation

Accumulated depreciation, depletion, and amortization increased steadily from 33,771 million US dollars in 2011 to 55,382 million US dollars in 2014. A substantial acceleration in this metric is observed in 2015, where the balance rose to 79,706 million US dollars, suggesting a significant impairment charge or a revaluation of assets.

The net book value of property and equipment, after accounting for accumulated depreciation, reached a peak of 53,280 million US dollars in 2012. A precipitous decline occurred in 2015, with the value dropping to 14,119 million US dollars, a reduction of approximately 70% from the 2014 balance. This erosion in net value was driven primarily by the surge in accumulated depreciation and amortization rather than a corresponding decrease in gross asset values.

The average age ratio for property, plant, and equipment exhibits a consistent and accelerating upward trend from 2011 through 2015, signaling a progressive aging of the company's asset base.

Incremental Asset Aging (2011–2014)

Between December 31, 2011, and December 31, 2014, the average age ratio rose steadily from 42.63% to 53.53%. This period is characterized by a gradual increase in the proportion of accumulated depreciation relative to gross assets, suggesting that capital expenditures were insufficient to offset the depreciation of existing assets.

Accelerated Depreciation Peak (2015)

A substantial surge is observed between December 31, 2014, and December 31, 2015, where the ratio increased sharply from 53.53% to 84.95%. This spike indicates that the majority of the property, plant, and equipment has approached the end of its useful life, potentially reflecting a significant reduction in new asset acquisitions or a strategic shift in capital investment during the final year of the analyzed period.

The financial data reveals a progressive increase in the average age of property, plant, and equipment between 2011 and 2015, culminating in a significant escalation during the final year of the period.

Gross Property and Equipment Trends

Gross asset values experienced a steady expansion from 2011 through 2014, peaking at US$ 103,458 million. However, this trend reversed in 2015, with gross assets declining to US$ 93,825 million, suggesting a reduction in the asset base through disposals or impairment write-downs.

Accumulated Depreciation, Depletion, and Amortization

A consistent upward trajectory is observed in accumulated depreciation, depletion, and amortization, which grew from US$ 33,771 million in 2011 to US$ 79,706 million in 2015. The most substantial increase occurred between 2014 and 2015, where the balance rose by approximately US$ 24,324 million, indicating an acceleration in the consumption of asset utility or a significant accounting adjustment.

Average Age Ratio Analysis

The average age ratio, which measures the proportion of the gross asset base that has been depreciated, rose moderately from 42.63% in 2011 to 53.53% in 2014. In 2015, the ratio spiked sharply to 84.95%. This dramatic increase, occurring simultaneously with a decrease in gross assets and a surge in accumulated depreciation, indicates a heavily aged asset portfolio and a high level of asset exhaustion.