CAPITAL STOCK

9 Months Ended

Sep. 30, 2012

CAPITAL STOCK

9. CAPITAL STOCK

Net Income per Common Share

A reconciliation of the components of basic and diluted net income per common share for the quarters and nine-month periods ended September 30, 2012 and 2011 is presented in the table below.

	For the Quarter Ended September 30,
	2012						2011
	Income		Shares		Per Share		Income		Shares		Per Share
	(In millions, except per share amounts)
Basic:
Income attributable to common stock	$	161		391	$	0.41	$	983		384	$	2.56
Effect of Dilutive Securities:
Mandatory Convertible Preferred Stock		—		—				19		14
Stock options and other		—		2				—		2
Diluted:
Income attributable to common stock, including assumed conversions	$	161		393	$	0.41	$	1,002		400	$	2.50
	For the Nine Months Ended September 30,
	2012						2011
	Income		Shares		Per Share		Income		Shares		Per Share
	(In millions, except per share amounts)
Basic:
Income attributable to common stock	$	1,276		388	$	3.29	$	3,338		384	$	8.70
Effect of Dilutive Securities:
Mandatory Convertible Preferred Stock		—		—				57		14
Stock options and other		—		2				—		2
Diluted:
Income attributable to common stock, including assumed conversions	$	1,276		390	$	3.27	$	3,395		400	$	8.49

The diluted earnings per share calculation excludes options and restricted stock units that were anti-dilutive totaling 5.1 million and 3.3 million for the quarters ending September 30, 2012 and 2011, and 4.1 million and 2.4 million for the nine months ended September 30, 2012 and 2011, respectively. For the quarter and nine months ended September 30, 2012, 14.3 million shares related to the assumed conversion of the Mandatory Convertible Preferred Stock were also anti-dilutive.

Issuance of Common and Preferred Shares

On April 30, 2012, in conjunction with Apache’s acquisition of Cordillera, the Company issued 6,272,667 shares of common stock to the sellers.

Common and Preferred Stock Dividends

For the quarter and nine months ended September 30, 2012, Apache paid $67 million and $189 million, respectively, in dividends on its common stock. For the quarter and nine months ended September 30, 2011, Apache paid $58 million and $173 million, respectively, in dividends on its common stock.

For the quarter and nine months ended September 30, 2012, Apache paid $19 million and $57 million, respectively, in dividends on its Series D Preferred Stock. For the quarter and nine months ended September 30, 2011, Apache paid $19 million and $57 million, respectively, in dividends on its Series D Preferred Stock.