Debt to Equity
since 2005
Calculation
Apache Corp., debt to equity, long-term trends, calculation
| Debt to equity | = | Total debt1 | ÷ | Total Apache shareholders’ equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2015 | 3.42 | = | 8,778) | ÷ | 2,566) |
| Dec 31, 2014 | 0.43 | = | 11,245) | ÷ | 25,937) |
| Dec 31, 2013 | 0.29 | = | 9,725) | ÷ | 33,396) |
| Dec 31, 2012 | 0.39 | = | 12,345) | ÷ | 31,331) |
| Dec 31, 2011 | 0.25 | = | 7,216) | ÷ | 28,993) |
| Dec 31, 2010 | 0.33 | = | 8,141) | ÷ | 24,377) |
| Dec 31, 2009 | 0.32 | = | 5,068) | ÷ | 15,779) |
| Dec 31, 2008 | 0.30 | = | 4,922) | ÷ | 16,509) |
| Dec 31, 2007 | 0.27 | = | 4,227) | ÷ | 15,378) |
| Dec 31, 2006 | 0.29 | = | 3,822) | ÷ | 13,191) |
| Dec 31, 2005 | 0.21 | = | 2,192) | ÷ | 10,541) |
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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
Between 2005 and 2015, a distinct transition in the capital structure is observed, moving from a period of conservative leverage and steady equity growth to a state of significant financial instability in the final year of the sequence.
- Total Debt Trajectory
- Total debt experienced a general upward trend for the majority of the period, increasing from US$ 2,192 million in 2005 to a peak of US$ 12,345 million in 2012. While there were fluctuations in the subsequent years, including a reduction to US$ 8,778 million by December 31, 2015, the company maintained a significantly higher debt load in the latter half of the decade compared to the beginning.
- Shareholders' Equity Performance
- Equity grew consistently from 2005 to 2013, ascending from US$ 10,541 million to a maximum of US$ 33,396 million. However, a severe contraction occurred thereafter. Equity fell to US$ 25,937 million in 2014 and collapsed to US$ 2,566 million by the end of 2015, representing a substantial loss of book value.
- Debt to Equity Ratio Analysis
- For ten years, the debt to equity ratio remained within a stable and low range, fluctuating between 0.21 and 0.43, which suggests a balanced approach to financing and a strong equity cushion. A critical inflection point occurred in 2015, where the ratio spiked to 3.42. This dramatic increase was not the result of additional borrowing—as total debt actually declined during that year—but was driven exclusively by the precipitous drop in shareholders' equity, indicating a severe deterioration in the company's solvency position.
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Comparison to Competitors
Apache Corp., debt to equity, long-term trends, comparison to competitors
| Apache Corp. | Chevron Corp. | ConocoPhillips | ExxonMobil Holdings Corp. | |
|---|---|---|---|---|
| Dec 31, 2015 | 3.42 | 0.25 | 0.63 | 0.23 |
| Dec 31, 2014 | 0.43 | 0.18 | 0.43 | 0.17 |
| Dec 31, 2013 | 0.29 | 0.14 | 0.42 | 0.13 |
| Dec 31, 2012 | 0.39 | 0.09 | 0.45 | 0.07 |
| Dec 31, 2011 | 0.25 | 0.08 | 0.35 | 0.11 |
| Dec 31, 2010 | 0.33 | 0.11 | 0.34 | 0.10 |
| Dec 31, 2009 | 0.32 | 0.11 | 0.46 | 0.09 |
| Dec 31, 2008 | 0.30 | 0.10 | 0.50 | 0.08 |
| Dec 31, 2007 | 0.27 | 0.09 | 0.24 | 0.08 |
| Dec 31, 2006 | 0.29 | 0.14 | 0.33 | 0.07 |
| Dec 31, 2005 | 0.21 | 0.21 | 0.24 | 0.07 |
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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Oil, Gas & Consumable Fuels)
Apache Corp., debt to equity, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Apache Corp. | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Dec 31, 2015 | 3.42 | 0.28 |
| Dec 31, 2014 | 0.43 | 0.21 |
| Dec 31, 2013 | 0.29 | 0.17 |
| Dec 31, 2012 | 0.39 | 0.13 |
| Dec 31, 2011 | 0.25 | 0.15 |
| Dec 31, 2010 | 0.33 | 0.16 |
| Dec 31, 2009 | 0.32 | 0.18 |
| Dec 31, 2008 | 0.30 | 0.18 |
| Dec 31, 2007 | 0.27 | 0.13 |
| Dec 31, 2006 | 0.29 | 0.17 |
| Dec 31, 2005 | 0.21 | 0.15 |
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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Energy)
Apache Corp., debt to equity, long-term trends, comparison to industry (energy)
| Apache Corp. | Energy | |
|---|---|---|
| Dec 31, 2015 | 3.42 | 0.30 |
| Dec 31, 2014 | 0.43 | 0.22 |
| Dec 31, 2013 | 0.29 | 0.19 |
| Dec 31, 2012 | 0.39 | 0.15 |
| Dec 31, 2011 | 0.25 | 0.16 |
| Dec 31, 2010 | 0.33 | 0.17 |
| Dec 31, 2009 | 0.32 | 0.19 |
| Dec 31, 2008 | 0.30 | 0.19 |
| Dec 31, 2007 | 0.27 | 0.15 |
| Dec 31, 2006 | 0.29 | 0.19 |
| Dec 31, 2005 | 0.21 | 0.16 |
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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).