Apache Corp. (NYSE:APA)

The financial data reveals significant fluctuations over the analyzed five-year period, highlighting notable volatility in profitability, cash flows, and investment activities.

Net Income (Loss)

There is a pronounced downward trend in net income, declining from a positive US$4,584 million in 2011 to a substantial loss of US$23,528 million in 2015. The shift into negative territory in 2014, followed by an even larger loss in 2015, indicates deteriorating operational or market conditions impacting profitability.

Depreciation, Depletion, and Amortization (DD&A)

DD&A expenses increase significantly over the period, peaking at US$29,372 million in 2015, nearly seven times the amount in 2011. This marked increase suggests rising capital asset base or impairments affecting asset values.

Impairments

Impairments appear only in the last two years, with US$2,357 million in 2014 and US$1,920 million in 2015, likely contributing to the observed net losses and elevated DD&A.

Provision for Deferred Income Taxes

The provision decreases steadily from US$1,246 million in 2011 to negative US$5,778 million in 2015, indicating changes in tax position possibly due to losses or tax planning strategies that resulted in tax benefits in the later years.

Changes in Working Capital (Operating Assets and Liabilities)

There is high volatility in working capital changes, with large negative shifts in receivables, payables, and accrued expenses, especially the significant decrease in accrued expenses in 2012. These fluctuations reflect operational adjustments and potential liquidity management efforts.

Net Cash Provided by Operating Activities

Operating cash flow peaks in 2011 at US$9,953 million but declines to US$2,834 million by 2015, reflecting the impact of worsening net income and operational challenges.

Investing Activities

Capital expenditures on oil and gas properties remain high but decline sharply from nearly US$10,000 million in 2013 and 2014 to US$4,578 million in 2015. Similarly, investments in gas facilities decrease notably. Proceeds from divestitures ramp up in 2013 and remain steady thereafter, possibly indicating asset sales to raise cash in response to financial pressures. Overall, net cash used in investing activities reduces from a high of US$13,424 million in 2012 to US$3,659 million in 2015, reflecting reduced investment outlays.

Financing Activities

Financing cash flows fluctuate, with a positive net inflow in 2012 (US$4,785 million) but negative outflows in other years, including a significant outflow of US$2,962 million in 2015. Debt activities show borrowing in 2012 followed by repayments in subsequent years. Dividends remain relatively stable, indicating a consistent return of capital despite financial difficulties. Treasury stock purchases occur notably in 2013 and 2014, suggesting capital management efforts during those years.

Discontinued Operations

Discontinued operations begin impacting cash flows in 2014, providing positive net cash inflows from operations, investing, and financing activities, with a substantial increase in investing proceeds in 2015 (US$4,335 million), indicating divestiture of significant business segments contributing to liquidity.

Cash and Cash Equivalents

Cash balances exhibit volatility, rising sharply in 2013 to US$1,906 million, then dropping to US$769 million in 2014 before recovering to US$1,467 million in 2015. This pattern aligns with fluctuations in operating cash flows, investing activities, and proceeds from divestitures, reflecting active cash management amid challenging financial performance.

In summary, the company experienced declining profitability with large net losses emerging in 2014 and 2015, accompanied by elevated depreciation and impairments. Operating cash flows weakened but remained positive. Investment activities declined alongside increased asset sales, while financing activities showed attempts at debt management and distribution continuity. The emergence of discontinued operations influenced cash flows positively in later years. Cash levels remained variable, shaped by operational cash generation, capital expenditures, asset divestitures, and financing transactions.