Name: Apache Corp. (NYSE:APA) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Download chart

Apache Corp., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
Oil revenues	4,999)	10,752)	12,903)	13,210)	12,679)
Gas revenues	1,157)	2,329)	2,829)	3,193)	3,609)
Natural gas liquids revenues	227)	668)	670)	544)	522)
Oil and gas production revenues	6,383)	13,749)	16,402)	16,947)	16,810)
Lease operating expenses	(1,854)	(2,479)	(3,056)	(2,968)	(2,605)
Gathering and transportation	(211)	(273)	(297)	(303)	(296)
Cost of revenues	(2,065)	(2,752)	(3,353)	(3,271)	(2,901)
Gross profit	4,318)	10,997)	13,049)	13,676)	13,909)
Recurring	(3,531)	(4,747)	(5,114)	(4,812)	(3,814)
Additional	(25,517)	(5,001)	(1,176)	(1,926)	(109)
Oil and gas property and equipment	(29,048)	(9,748)	(6,290)	(6,738)	(3,923)
Other assets	(324)	(410)	(410)	(371)	(281)
Depreciation, depletion, and amortization	(29,372)	(10,158)	(6,700)	(7,109)	(4,204)
Asset retirement obligation accretion	(145)	(181)	(243)	(232)	(154)
Taxes other than income	(282)	(678)	(832)	(862)	(899)
Impairments	(1,920)	(2,357)	—)	—)	—)
General and administrative	(377)	(434)	(503)	(531)	(459)
Transaction, reorganization, and separation	(132)	(67)	(33)	(31)	(20)
Operating income (loss)	(27,910)	(2,878)	4,738)	4,911)	8,173)
Derivative instrument gains (losses), net	—)	284)	(399)	(79)	—)
Other	(17)	(182)	51)	210)	78)
Interest expense, net of capitalized interest	(259)	(136)	(197)	(175)	(170)
Amortization of deferred loan costs	(11)	(6)	(8)	(7)	(5)
Gain (loss) on extinguishment of debt	(39)	—)	16)	—)	—)
Interest income	10)	12)	15)	17)	17)
Financing costs, net	(299)	(130)	(174)	(165)	(158)
Net income (loss) from continuing operations before income taxes	(28,226)	(2,906)	4,216)	4,877)	8,093)
Income tax (provision) benefit	5,469)	(1,637)	(1,928)	(2,876)	(3,509)
Net income (loss) from continuing operations including noncontrolling interest	(22,757)	(4,543)	2,288)	2,001)	4,584)
Net loss from discontinued operations, net of tax	(771)	(517)	—)	—)	—)
Net income (loss) including noncontrolling interest	(23,528)	(5,060)	2,288)	2,001)	4,584)
Net (income) loss attributable to noncontrolling interest	409)	(343)	(56)	—)	—)
Net income (loss) attributable to Apache shareholders	(23,119)	(5,403)	2,232)	2,001)	4,584)
Preferred stock dividends	—)	—)	(44)	(76)	(76)
Income (loss) attributable to common stock	(23,119)	(5,403)	2,188)	1,925)	4,508)

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).

The financial performance from 2011 to 2015 is characterized by a severe deterioration in both top-line revenue and bottom-line profitability, culminating in substantial net losses by the end of the period.

Revenue Trends: Total oil and gas production revenues experienced a significant downward trajectory, falling from 16,810 million US$ in 2011 to 6,383 million US$ in 2015. The most acute decline occurred between 2014 and 2015, where revenues dropped by more than 50%. Oil revenues, the primary driver of income, fell from a peak of 13,210 million US$ in 2012 to 4,999 million US$ in 2015. Similarly, gas revenues showed a consistent year-over-year decline throughout the five-year period.
Operating Expenses and Asset Impairment: While lease operating expenses and gathering and transportation costs generally decreased in absolute terms as production revenues fell, other operating costs escalated sharply. Depreciation, depletion, and amortization (DD&A) grew from 4,204 million US$ in 2011 to an exceptional 29,372 million US$ in 2015. This surge was primarily driven by massive write-downs of oil and gas property and equipment, which reached 29,048 million US$ in 2015. Additionally, impairment charges became a factor in 2014 and 2015, totaling 2,357 million US$ and 1,920 million US$ respectively.
Profitability and Operating Income: The combination of falling revenues and escalating non-cash charges led to a collapse in operating income. The company transitioned from a strong operating profit of 8,173 million US$ in 2011 to an operating loss of 2,878 million US$ in 2014, and finally to a massive operating loss of 27,910 million US$ in 2015. Gross profit margins were compressed significantly, moving from 13,909 million US$ in 2011 to 4,318 million US$ in 2015.
Net Income and Tax Impact: Net income attributable to common shareholders mirrored the operating decline, shifting from a profit of 4,508 million US$ in 2011 to a net loss of 23,119 million US$ in 2015. The company's tax position shifted from recording tax provisions in the early years to realizing a substantial income tax benefit of 5,469 million US$ in 2015, which partially mitigated the impact of the operating losses on the final net income figure.
Financing and Other Costs: Financing costs remained relatively stable compared to operating volatility until 2015, when net financing costs increased to 299 million US$. Interest expenses net of capitalized interest also rose in 2015 to 259 million US$ from 136 million US$ in 2014, indicating increased pressure on debt servicing amidst declining operational cash flow.

AI Ask an analyst for more

My previous chats

Add tokens

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?