Apache Corp., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
Net income (loss) attributable to Apache shareholders	(23,119)	(5,403)	2,232)	2,001)	4,584)
Net (income) loss attributable to noncontrolling interest	(409)	343)	56)	—)	—)
Net noncash charges	26,532)	13,657)	7,466)	8,244)	5,650)
Changes in operating assets and liabilities	(170)	(218)	81)	(1,741)	(281)
Net cash provided by operating activities	2,834)	8,379)	9,835)	8,504)	9,953)
Interest paid, net of capitalized interest, net of tax¹	198)	209)	104)	60)	88)
Capitalized interest, net of tax²	183)	567)	203)	137)	149)
Additions to oil and gas property	(4,578)	(9,721)	(10,019)	(8,781)	(6,414)
Additions to gas gathering, transmission, and processing facilities	(233)	(1,159)	(1,201)	(750)	(664)
Proceeds from sale of oil and gas properties, other	268)	470)	307)	27)	422)
Free cash flow to the firm (FCFF)	(1,328)	(1,254)	(771)	(803)	3,534)

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).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Apache Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Apache Corp. FCFF decreased from 2013 to 2014 and from 2014 to 2015.

Apache Corp., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
Earnings before tax (EBT)
Net income (loss) attributable to Apache shareholders	(23,119)	(5,403)	2,232)	2,001)	4,584)
Add: Net income attributable to noncontrolling interest	(409)	343)	56)	—)	—)
Less: Net loss from discontinued operations, net of tax	(771)	(517)	—)	—)	—)
Add: Income tax expense	(5,469)	1,637)	1,928)	2,876)	3,509)
EBT	(28,226)	(2,906)	4,216)	4,877)	8,093)
Effective Income Tax Rate (EITR)
EITR¹	19.38%	-56.33%	45.73%	58.97%	43.36%
Interest Paid, Net of Tax
Interest paid, net of capitalized interest, before tax	246)	134)	192)	146)	156)
Less: Interest paid, net of capitalized interest, tax²	48)	(75)	88)	86)	68)
Interest paid, net of capitalized interest, net of tax	198)	209)	104)	60)	88)
Interest Costs Capitalized, Net of Tax
Capitalized interest, before tax	227)	363)	374)	334)	263)
Less: Capitalized interest, tax³	44)	(204)	171)	197)	114)
Capitalized interest, net of tax	183)	567)	203)	137)	149)

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).

¹ 2015 Calculation
EITR = 100 × Income tax expense ÷ EBT
= 100 × -5,469 ÷ -28,226 = 19.38%

² 2015 Calculation
Interest paid, net of capitalized interest, tax = Interest paid, net of capitalized interest × EITR
= 246 × 19.38% = 48

³ 2015 Calculation
Capitalized interest, tax = Capitalized interest × EITR
= 227 × 19.38% = 44

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Apache Corp., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	28,012)
Free cash flow to the firm (FCFF)	(1,328)
Valuation Ratio
EV/FCFF	—
Benchmarks
EV/FCFF, Competitors¹
Chevron Corp.	15.69
ConocoPhillips	17.69
Exxon Mobil Corp.	14.39
Marathon Petroleum Corp.	7.19
Occidental Petroleum Corp.	12.43
Valero Energy Corp.	7.41

Based on: 10-K (reporting date: 2015-12-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Apache Corp., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	23,904)	37,486)	41,114)	42,304)	49,628)
Free cash flow to the firm (FCFF)²	(1,328)	(1,254)	(771)	(803)	3,534)
Valuation Ratio
EV/FCFF³	—	—	—	—	14.04
Benchmarks
EV/FCFF, Competitors⁴
Chevron Corp.	—	—	—	—	—
ConocoPhillips	—	—	—	—	—
Exxon Mobil Corp.	—	—	—	—	—
Marathon Petroleum Corp.	—	—	—	—	—
Occidental Petroleum Corp.	—	—	—	—	—
Valero Energy Corp.	—	—	—	—	—

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).

¹ See details »

² See details »

³ 2015 Calculation
EV/FCFF = EV ÷ FCFF
= 23,904 ÷ -1,328 = —

⁴ Click competitor name to see calculations.

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Apache Corp. (NYSE:APA)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical