Analysis of Property, Plant and Equipment
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- Analysis of Solvency Ratios
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Current Ratio since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
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Property, Plant and Equipment Disclosure
Apache Corp., balance sheet: property, plant and equipment
US$ in millions
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).
- Proved properties
- Proved properties showed a generally increasing trend from 67,805 million USD in 2011 to a peak of 89,852 million USD in 2014, followed by a slight decrease to 89,069 million USD in 2015. This indicates continued investment and growth in assets considered to have proven reserves until 2014, with a small reduction in 2015.
- Unproved properties and properties under development, not being amortized
- These properties grew substantially from 5,530 million USD in 2011 to 8,754 million USD in 2012, then slightly declined to 8,363 million USD in 2013 and dropped steadily thereafter to 2,611 million USD by 2015. The significant decrease after 2012 suggests a reduced focus or reclassification of assets not yet amortized, possibly reflecting development progress or asset divestitures.
- Oil and gas, on the basis of full-cost accounting
- This category increased consistently from 73,335 million USD in 2011 to 96,866 million USD in 2014 before falling to 91,680 million USD in 2015. The growth over the first four years aligns with expansions in proved properties and overall capitalized costs before a notable reduction in the final year.
- Gathering, transmission, and processing facilities
- Values rose from 5,175 million USD in 2011 to a peak of 6,995 million USD in 2013, then sharply declined in the following years to 5,440 million USD in 2014 and further down to 1,052 million USD in 2015. This steep drop in the last two years could indicate asset sales, impairments, or strategic shifts away from processing and transmission infrastructure.
- Other
- The 'Other' category saw a moderate increase from 709 million USD in 2011 to 1,152 million USD in 2014, followed by a slight reduction to 1,093 million USD in 2015. This reflects relatively stable miscellaneous property and equipment values with minor fluctuations.
- Property and equipment, gross
- Gross property and equipment values increased from 79,219 million USD in 2011 to a peak of 103,458 million USD in 2014, followed by a decline to 93,825 million USD in 2015. The rise corresponds with investments across most categories until 2014, while the 2015 decrease suggests disposals or impairments impacting overall gross asset values.
- Accumulated depreciation, depletion, and amortization
- This account experienced a consistent increase in magnitude (more negative) from -33,771 million USD in 2011 to -79,706 million USD in 2015. This trend reflects ongoing charging of depreciation and depletion expenses, with a pronounced increase in the final year indicating accelerated amortization or asset write-downs.
- Property and equipment, less accumulated depreciation, depletion, and amortization
- Net property and equipment values increased from 45,448 million USD in 2011 to a peak of 53,280 million USD in 2012 before steadily declining to 14,119 million USD in 2015. The sharp drop after 2012, particularly between 2014 and 2015, is notable and primarily driven by the substantial increase in accumulated depreciation and reductions in gross asset values, indicating significant asset impairments or disposals.
Asset Age Ratios (Summary)
Apache Corp., asset age ratios
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).
- Average Age Ratio
- The average age ratio exhibits a consistent upward trend throughout the period from 2011 to 2015.
- Starting at 42.63% at the end of 2011, it increased moderately each year, reaching 43.41% in 2012, and subsequently rising to 47.48% in 2013.
- The ratio continued its ascent to 53.53% in 2014, followed by a more pronounced increase, culminating at 84.95% in 2015.
- This rising average age ratio suggests a gradual aging of the property, plant, and equipment base, with a particularly notable acceleration in aging or reduction in new asset additions during the final year analyzed.
Average Age
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 Average age = 100 × Accumulated depreciation, depletion and amortization ÷ Property and equipment, gross
= 100 × ÷ =
- Accumulated depreciation, depletion and amortization
- The accumulated depreciation, depletion, and amortization exhibited a consistent upward trend throughout the five-year period. It increased from 33,771 million US dollars in 2011 to 79,706 million US dollars in 2015, indicating a steady allocation of expense related to the wear and tear or usage of property and equipment assets. This substantial rise reflects significant consumption of asset values over time.
- Property and equipment, gross
- The gross value of property and equipment showed an overall increase from 79,219 million US dollars in 2011 to 103,458 million US dollars in 2014, suggesting ongoing investments or asset acquisitions during these years. However, in 2015, there was a notable decline to 93,825 million US dollars, signaling possible asset disposals or revaluations that reduced the gross asset base.
- Average age ratio
- The average age ratio, representing the proportion of accumulated depreciation to gross property and equipment, progressively increased each year. Starting at 42.63% in 2011, it modestly grew to 53.53% by 2014 but then experienced a significant rise to 84.95% in 2015. This sharp increase suggests the asset base became considerably older or more fully depreciated in 2015, which may imply a slowdown in asset renewal or a shift in asset composition.