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CAPITAL STOCK
 6 Months Ended
Jun. 30, 2022
Equity [Abstract]  
CAPITAL STOCK REDEEMABLE NONCONTROLLING INTEREST — ALTUS
Preferred Units Issuance
On June 12, 2019, Altus Midstream LP issued and sold Preferred Units for an aggregate issue price of $625 million in a private offering exempt from the registration requirements of the Securities Act (the Closing). Altus Midstream LP received approximately $611 million in cash proceeds from the sale after deducting transaction costs and discounts to certain purchasers.
Classification
Prior to the deconsolidation of Altus on February 22, 2022, at December 31, 2021, the carrying amount of the Preferred Units was recorded as “Redeemable Noncontrolling Interest — Altus Preferred Unit Limited Partners” classified as temporary equity on the Company’s consolidated balance sheet based on the terms of the Preferred Units, including the redemption rights with respect thereto.
Measurement
Altus applied a two-step approach to subsequent measurement of the redeemable noncontrolling interest related to the Preferred Units by first allocating a portion of the net income of Altus Midstream LP in accordance with the terms of the partnership agreement. An additional adjustment to the carrying value of the Preferred Unit redeemable noncontrolling interest at each period end was recorded, if applicable. The amount of such adjustment was determined based upon the accreted value method to reflect the passage of time until the Preferred Units were exchangeable at the option of the holder. Pursuant to this method, the net transaction price was accreted using the effective interest method to the Redemption Price calculated at the seventh anniversary of the Closing. The total adjustment was limited to an amount such that the carrying amount of the Preferred Unit redeemable noncontrolling interest at each period end was equal to the greater of (a) the sum of (i) the carrying amount of the Preferred Units, plus (ii) the fair value of the embedded derivative liability and (b) the accreted value of the net transaction price.
Activity related to the Preferred Units is as follows:
Units
Outstanding
Financial
Position
(In millions, except unit data)
Redeemable noncontrolling interest — Preferred Units at: December 31, 2020660,694 $608 
Cash distributions to Altus Preferred Unit limited partners— (46)
Distributions payable to Altus Preferred Unit limited partners— (12)
Allocation of Altus Midstream LP net incomeN/A80 
Accreted value adjustmentN/A82 
Redeemable noncontrolling interest — Preferred Units at: December 31, 2021660,694 712 
Allocation of Altus Midstream LP net incomeN/A12 
Accreted value adjustment(1)
N/A(82)
Redeemable noncontrolling interest — Preferred Units at: February 22, 2022660,694 642 
Preferred Units embedded derivative89 
Deconsolidation of Altus(731)
$— 
(1)    Includes the reversal of previously recorded accreted value adjustments of $53 million due to the deconsolidation of Altus.

N/A - not applicable.
CAPITAL STOCK
Upon consummation of the Holding Company Reorganization, each outstanding share of Apache common stock automatically converted into a share of APA common stock on a one-for-one basis. As a result, each stockholder of Apache now owns the same number of shares of APA common stock that such stockholder owned of Apache common stock immediately prior to the Holding Company Reorganization.
Additionally, in connection with the Holding Company Reorganization, Apache transferred to APA, and APA assumed, sponsorship of all of Apache’s stock plans along with all of Apache’s rights and obligations under each plan.
Net Income per Common Share
The following table presents a reconciliation of the components of basic and diluted net income per common share in the consolidated financial statements:
 
For the Quarter Ended June 30,
 20222021
 IncomeSharesPer ShareIncomeSharesPer Share
 (In millions, except per share amounts)
Basic:
Income attributable to common stock$926 341 $2.72 $316 378 $0.83 
Effect of Dilutive Securities:
Stock options and other$— 1 $(0.01)$— 1 $— 
Redeemable noncontrolling interest - Altus Preferred Unit limited partners$— — $— $(6)— $(0.01)
Diluted:
Income attributable to common stock$926 342 $2.71 $310 379 $0.82 
For the Six Months Ended June 30,
20222021
IncomeSharesPer ShareIncomeSharesPer Share
(In millions, except per share amounts)
Basic:
Income attributable to common stock$2,809 344 $8.18 $704 378 $1.86 
Effect of Dilutive Securities:
Stock options and other$— — $(0.03)$— 1 $— 
Diluted:
Income attributable to common stock$2,809 344 $8.15 $704 379 $1.86 
Prior to the deconsolidation of Altus on February 22, 2022, the Company used the “if-converted method” to determine the potential dilutive effect of an assumed exchange of the outstanding Preferred Units of Altus Midstream LP for shares of Altus Midstream Company’s common stock. The impact to net income attributable to common stock on an assumed conversion of the Preferred Units was anti-dilutive for the six months ended June 30, 2021. The diluted earnings per share calculation excludes options and restricted stock units that were anti-dilutive of 2.0 million and 3.4 million during the second quarters of 2022 and 2021, respectively, and 2.7 million and 3.7 million during the first six months of 2022 and 2021, respectively.
Stock Repurchase Program
During 2018, Apache’s Board of Directors authorized the purchase of up to 40 million shares of the Company’s common stock. No shares were purchased under this authorization through December 31, 2020. During the fourth quarter of 2021, the Company’s Board of Directors authorized the purchase of an additional 40 million shares of the Company’s common stock. Shares may be purchased either in the open market or through privately negotiated transactions.
In the second quarter of 2022, the Company repurchased 7.0 million shares at an average price of $41.60 per share, and as of June 30, 2022, the Company had remaining authorization to repurchase up to 34.6 million shares. For the six months ended June 30, 2022, the Company repurchased 14.2 million shares at an average price of $38.79 per share The Company is not obligated to acquire any additional shares. The Company did not repurchase any shares during the six months ended June 30, 2021.
The Company repurchased 6.9 million shares at an average price of $33.88 per share in July 2022, and as of July 31, 2022, the Company had remaining authorization to repurchase up to 27.7 million shares. The Company is not obligated to acquire any additional shares.
Common Stock Dividends
For the quarters ended June 30, 2022 and 2021, the Company paid $43 million and $9 million, respectively, in dividends on its common stock. For the six months ended June 30, 2022 and 2021, the Company paid $86 million and $19 million, respectively, in dividends on its common stock.
During the third quarter of 2021, the Company’s Board of Directors approved an increase in its quarterly dividend from $0.025 per share to $0.0625 per share and, in the fourth quarter of 2021, approved a further increase to $0.125 per share.