Name: Apache Corp. (NYSE:APA) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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Apache Corp., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
Accounts payable	618)	1,210)	1,616)	1,092)	1,048)
Derivative instruments	—)	—)	299)	116)	113)
Accrued operating expenses	139)	163)	190)	211)	221)
Accrued exploration and development	637)	1,606)	1,582)	1,792)	1,430)
Accrued compensation and benefits	166)	204)	242)	198)	180)
Accrued interest	144)	160)	161)	160)	135)
Accrued income taxes	47)	54)	248)	297)	533)
Current asset retirement obligation	36)	37)	121)	478)	447)
Current debt	1)	—)	53)	990)	431)
Other	53)	230)	188)	202)	425)
Other current liabilities	1,223)	2,454)	2,785)	4,328)	3,802)
Current liabilities	1,841)	3,664)	4,700)	5,536)	4,963)
Long-term debt, excluding current maturities	8,777)	11,245)	9,672)	11,355)	6,785)
Income taxes	1,072)	9,499)	8,364)	8,024)	7,197)
Asset retirement obligation	2,562)	3,048)	3,101)	4,100)	3,440)
Other	362)	359)	407)	391)	673)
Deferred credits and other noncurrent liabilities	3,996)	12,906)	11,872)	12,515)	11,310)
Noncurrent liabilities	12,773)	24,151)	21,544)	23,870)	18,095)
Total liabilities	14,614)	27,815)	26,244)	29,406)	23,058)
Preferred stock, no par value, 6% Cumulative Mandatory Convertible, Series D, $1,000 per share liquidation preference	—)	—)	—)	1,227)	1,227)
Common stock, $0.625 par	257)	256)	255)	245)	241)
Paid-in capital	12,467)	12,438)	12,251)	9,859)	9,066)
Retained earnings (accumulated deficit)	(7,153)	16,249)	22,032)	20,161)	18,500)
Treasury stock, at cost	(2,889)	(2,890)	(1,027)	(30)	(32)
Accumulated other comprehensive loss	(116)	(116)	(115)	(131)	(9)
Total Apache shareholders’ equity	2,566)	25,937)	33,396)	31,331)	28,993)
Noncontrolling interest	1,662)	2,200)	1,997)	—)	—)
Total equity	4,228)	28,137)	35,393)	31,331)	28,993)
Total liabilities and equity	18,842)	55,952)	61,637)	60,737)	52,051)

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).

Between 2011 and 2015, the capital structure underwent a significant transformation, characterized by a period of relative stability and growth followed by a sharp contraction in the final year. While total liabilities and equity peaked in 2013 at 61,637 million US$, a dramatic reduction occurred by 2015, with total balance sheet size falling to 18,842 million US$. This contraction is primarily driven by a substantial erosion of shareholders' equity and a simultaneous reduction in noncurrent liabilities.

Liability Trends and Composition: Current liabilities exhibited a downward trend from a peak of 5,536 million US$ in 2012 to 1,841 million US$ in 2015. A notable component of this decline was the reduction in accounts payable, which fell from 1,616 million US$ in 2013 to 618 million US$ in 2015. Noncurrent liabilities showed higher volatility, peaking at 24,151 million US$ in 2014 before dropping precipitously to 12,773 million US$ in 2015. This sharp decrease in noncurrent liabilities was largely attributable to a collapse in reported income taxes from 9,499 million US$ in 2014 to 1,072 million US$ in 2015, and a similar decline in deferred credits and other noncurrent liabilities, which fell from 12,906 million US$ to 3,996 million US$ in the same period.
Debt Profile: Long-term debt, excluding current maturities, increased significantly from 6,785 million US$ in 2011 to 11,355 million US$ in 2012. After fluctuating between 9,672 million US$ and 11,245 million US$ through 2014, the long-term debt balance decreased to 8,777 million US$ by 2015. The reduction in current debt was even more pronounced, moving from 990 million US$ in 2012 to nearly zero by 2015.
Equity Erosion and Retained Earnings: The most critical shift occurred within shareholders' equity. Total Apache shareholders' equity grew steadily from 28,993 million US$ in 2011 to a peak of 33,396 million US$ in 2013, before declining to 2,566 million US$ by 2015. This erosion is directly linked to the movement in retained earnings, which transitioned from a surplus of 22,032 million US$ in 2013 to an accumulated deficit of 7,153 million US$ in 2015. This swing indicates substantial losses or large-scale distributions that severely depleted the company's internal capital reserves.
Treasury Stock and Capital Adjustments: A pattern of increasing treasury stock acquisitions is observable between 2011 and 2014, with the cost of treasury stock rising from 32 million US$ to 2,890 million US$. This suggests an active share repurchase program during the period of equity growth, which may have further contributed to the reduction of total equity in the subsequent years.

Overall, the financial position shifted from a high-asset, high-equity structure in 2013 to a significantly leaner and more leveraged position by 2015. The emergence of a large accumulated deficit and the drastic reduction in total equity suggest a period of severe financial stress or a major corporate restructuring event occurring between 2014 and 2015.

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