Apache Corp. (NYSE:APA)

Oil and gas production revenues

The revenue from oil and gas production exhibits a generally increasing trend from 2005 through 2012, rising from 7,457 million USD in 2005 to a peak of 16,947 million USD in 2012. After reaching this peak, revenues show a slight decreasing pattern in the following years, with a decline to 16,402 million USD in 2013 and a more pronounced drop to 6,383 million USD by 2015. This indicates a period of growth followed by a significant revenue contraction toward the end of the analyzed timeframe.

Net income (loss) attributable to Apache shareholders

Net income displays considerable volatility over the analyzed period. Initial years from 2005 to 2007 reflect positive earnings ranging between 2,552 million USD and 2,812 million USD. However, 2008 marks a steep decline to 712 million USD, followed by a net loss of 284 million USD in 2009. A strong recovery occurs in 2010 and 2011 with net income rising to 3,032 million USD and 4,584 million USD respectively. Subsequent years again present instability: positive earnings in 2012 and 2013 (2,001 million USD and 2,232 million USD), turning into substantial losses in 2014 (-5,403 million USD) and a dramatic loss in 2015 (-23,119 million USD). This pattern suggests a high sensitivity of net income to external or operational factors, with periods of profitability interrupted by sharp losses.

The financial data over the period from December 31, 2005, to December 31, 2015, reveals several notable trends in current assets and total assets.

Current assets

Current assets exhibited a generally increasing trend from 2005 to 2014, rising from US$2,162 million at the end of 2005 to a peak of US$6,415 million in 2014. This represents almost a threefold increase over this period. There was a slight decline in 2010, with current assets decreasing to US$3,480 million from US$4,586 million in 2009, followed by a substantial recovery and growth in subsequent years. However, in 2015, current assets sharply declined to US$3,752 million, which is notably lower than the preceding two years but still above the 2005 level.

Total assets

Total assets demonstrated a strong upward trend from 2005 through 2013, increasing from US$19,272 million to a peak of US$61,637 million in 2013. This substantial growth period shows a more than threefold increase in total assets over eight years. After 2013, total assets decreased significantly, dropping to US$55,952 million in 2014 and dramatically falling further to US$18,842 million in 2015, a level comparable to that at the beginning of the period in 2005. The sharp decline in total assets in the last year recorded indicates a considerable contraction in asset base or potential divestiture or impairment events.

Overall, the data indicates a phase of rapid asset accumulation between 2005 and 2013, followed by a pronounced contraction in the last two years, particularly in 2015. The fluctuation in current assets aligns with the broader asset trend but is less volatile until 2015, where both asset categories show significant reduction.

The analysis of the presented financial data reveals several noteworthy trends in the company's financial position over the eleven-year period.

Current Liabilities

The current liabilities exhibit fluctuations with an overall tendency to increase until reaching a peak in 2012 at 5536 million US dollars. After this peak, there is a distinct downward trend, culminating in a significant reduction to 1841 million US dollars by the end of 2015. This reduction in current liabilities after 2012 may indicate improved short-term financial management or payment of short-term obligations.

Total Debt

Total debt steadily increased from 2192 million US dollars in 2005 to a notable peak of 12345 million US dollars in 2012, reflecting significant leveraging activities or financing for expansion during this period. Post-2012, there is a decline in total debt levels, decreasing to 8778 million US dollars by 2015, which may suggest efforts to deleverage and reduce financial risk.

Total Shareholders’ Equity

Shareholders’ equity shows a general upward trend, increasing from 10541 million US dollars in 2005 to a maximum of 33396 million US dollars in 2013. However, after 2013, there is a sharp decline to 2566 million US dollars by 2015, representing a significant erosion of equity. This abrupt decline could be indicative of substantial losses, asset write-downs, or dividend distributions exceeding earnings during this period.

Overall, the data reflects a period of growth in both liabilities and equity through the early years, culminating around 2012-2013, followed by a period characterized by aggressive debt reduction alongside a precipitous decline in equity by 2015. These patterns suggest a phase of financial restructuring or challenges affecting the firm's capital base in the later years.

Operating Activities Cash Flow

The net cash provided by operating activities exhibited fluctuations during the observed period. It started at a level above $4 billion in 2005 and remained relatively stable through 2006. A notable increase occurred in 2007 and 2008, peaking above $7 billion in 2008. Following this, there was a decline in 2009, falling back to approximately $4.2 billion. From 2010 to 2014, operating cash flow showed a generally strong performance, peaking around $9.9 billion in 2011 and maintaining elevated levels above $8 billion except for a slight dip in 2012 and 2014. However, in 2015, there was a significant decrease to roughly $2.8 billion, marking the lowest point in the dataset.

Investing Activities Cash Flow

Net cash used in investing activities consistently represented an outflow throughout all years, indicating ongoing investments or asset acquisitions. The outflows intensified significantly in 2006 and 2007, reaching nearly $6 billion annually, and then temporarily lessened in 2009 to approximately $3.2 billion. A sharp increase in investing cash outflows was observed in 2010, peaking at over $13 billion. The following years showed persistent high levels of investment cash usage, with a notable second peak in 2012 close to $13.4 billion. After 2012, the outflows decreased but remained substantial, with values fluctuating between $3.6 billion and $9.5 billion, with the lowest outflow in 2015.

Financing Activities Cash Flow

Net cash provided by or used in financing activities showed considerable variability with both inflows and outflows over the period. The initial years 2005 to 2007 reflect mixed activity with inflows peaking at $1.4 billion in 2006 and smaller positive values in 2007 and 2010. There were multiple years of net cash outflows from financing, notably in 2008, 2009, 2011, 2013, 2014, and especially in 2015 where the outflow reached nearly $3 billion. Positive inflows reoccurred in 2010 and 2012, with a particularly large inflow of nearly $4.8 billion in 2010 and 2012. Overall, the pattern suggests periods of financing inflows interspersed with larger outflows, with a predominance of outflows towards the latter part of the period.

Summary of Financial Cash Flow Trends

The data illustrate a pattern of strong operating cash generation through most of the years examined, interrupted by a significant decline in 2015. The company consistently invested heavily, as demonstrated by persistent and significant negative cash flows from investing activities, with two notable peaks in 2010 and 2012. Financing activities fluctuated between periods of net borrowing and repayments, with a shift towards larger net outflows towards the end of the period, culminating in substantial use of cash in financing activities in 2015. These movements collectively imply a company actively investing while managing its financing strategies dynamically in response to operating cash flow changes.

The financial data reveals several notable trends over the period from 2005 to 2015. The company's earnings per share (EPS), both basic and diluted, displayed significant volatility. Initially, EPS maintained relatively stable and positive values, with basic EPS peaking around 11.75 US$ in 2011 after a decline in 2008 and a brief negative value in 2009. However, from 2012 onwards, earnings per share exhibited a downward trend culminating in sharp negative values by 2014 and 2015, reaching as low as -61.2 US$. This dramatic decrease in EPS reflects substantial operational or financial difficulties during the final years of the period analyzed.

In parallel, dividend per share showed a contrasting pattern characterized by gradual growth and stability. From 2005 through 2015, dividends increased steadily from 0.36 US$ to 1 US$, with a small dip in 2009 corresponding with the temporary negative earnings. The continuation of dividends despite financially challenging years suggests a focus on shareholder returns, although this might have exerted additional pressure on the company’s financial health during periods of negative earnings.

Basic and Diluted Earnings per Share

Both basic and diluted EPS followed a similar trend, indicating that share dilution had a minimal impact on per-share profitability. The EPS was relatively stable and positive up to 2007, dropped significantly in 2008 and 2009, and then partially recovered until 2011. After 2011, EPS declined steeply, turning negative in 2014 and 2015, signaling severe financial distress or losses.

Dividend per Share

Dividends per share generally increased throughout the period, suggesting a consistent policy of returning value to shareholders. Despite a mild reduction in 2009 (in conjunction with negative earnings), dividends resumed growth and plateaued at 1 US$ by 2014 and 2015, even while EPS was substantially negative, which may indicate a strategic decision to maintain investor confidence.