16. SUPPLEMENTAL GUARANTOR INFORMATION

In December 1999, Apache Finance Canada Corporation (Apache Finance Canada) issued approximately $300 million of publicly-traded notes due in 2029. In May 2003, Apache Finance Canada issued an additional $350 million of publicly-traded notes due in 2015. Both are fully and unconditionally guaranteed by Apache. The following condensed consolidating financial statements are provided as an alternative to filing separate financial statements.

Apache Finance Canada has been fully consolidated in Apache’s consolidated financial statements. As such, these condensed consolidating financial statements should be read in conjunction with the financial statements of Apache Corporation and subsidiaries and notes thereto, of which this note is an integral part.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Year Ended December 31, 2012


	Apache Corporation			Apache Finance Canada			All Other Subsidiaries of Apache Corporation		Reclassifications & Eliminations			Consolidated
	(In millions)
REVENUES AND OTHER:
Oil and gas production revenues	$	4,237		$	—		$	12,710	$	—		$	16,947
Equity in net income (loss) of affiliates		1,523			(737	)		248		(1,034	)		—
Other		(80	)		69			146		(4	)		131

		5,680			(668	)		13,104		(1,038	)		17,078

OPERATING EXPENSES:
Depreciation, depletion, and amortization		1,391			—			5,718		—			7,109
Asset retirement obligation accretion		76			—			156		—			232
Lease operating expenses		957			—			2,011		—			2,968
Gathering and transportation		51			—			252		—			303
Taxes other than income		185			—			677		—			862
General and administrative		425			—			110		(4	)		531
Merger, acquisitions & transition		25			—			6		—			31
Financing costs, net		94			(20	)		91		—			165

		3,204			(20	)		9,021		(4	)		12,201

INCOME (LOSS) BEFORE INCOME TAXES		2,476			(648	)		4,083		(1,034	)		4,877
Provision (benefit) for income taxes		475			(159	)		2,560		—			2,876

NET INCOME (LOSS)		2,001			(489	)		1,523		(1,034	)		2,001
Preferred stock dividends		76			—			—		—			76

INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK	$	1,925		$	(489	)	$	1,523	$	(1,034	)	$	1,925

COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK	$	1,803		$	(489	)	$	1,523	$	(1,034	)	$	1,803

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Year Ended December 31, 2011


	Apache Corporation		Apache Finance Canada			All Other Subsidiaries of Apache Corporation			Reclassifications & Eliminations			Consolidated
	(In millions)
REVENUES AND OTHER:
Oil and gas production revenues	$	4,380	$	—		$	12,430		$	—		$	16,810
Equity in net income (loss) of affiliates		3,590		234			46			(3,870	)		—
Other		9		125			(52	)		(4	)		78

		7,979		359			12,424			(3,874	)		16,888

OPERATING EXPENSES:
Depreciation, depletion, and amortization		1,257		—			2,947			—			4,204
Asset retirement obligation accretion		70		—			84			—			154
Lease operating expenses		794		—			1,811			—			2,605
Gathering and transportation		51		—			245			—			296
Taxes other than income		170		—			729			—			899
General and administrative		365		—			98			(4	)		459
Merger, acquisitions & transition		14		—			6			—			20
Financing costs, net		149		(18	)		27			—			158

		2,870		(18	)		5,947			(4	)		8,795

INCOME (LOSS) BEFORE INCOME TAXES		5,109		377			6,477			(3,870	)		8,093
Provision (benefit) for income taxes		525		97			2,887			—			3,509

NET INCOME (LOSS)		4,584		280			3,590			(3,870	)		4,584
Preferred stock dividends		76		—			—			—			76

INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK	$	4,508	$	280		$	3,590		$	(3,870	)	$	4,508

COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK	$	4,640	$	280		$	3,590		$	(3,870	)	$	4,640

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010


	Apache Corporation		Apache Finance Canada			All Other Subsidiaries of Apache Corporation			Reclassifications & Eliminations			Consolidated
	(In millions)
REVENUES AND OTHER:
Oil and gas production revenues	$	3,665	$	—		$	8,518		$	—		$	12,183
Equity in net income (loss) of affiliates		2,265		81			(7	)		(2,339	)		—
Other		27		(1	)		(113	)		(4	)		(91	)

		5,957		80			8,398			(2,343	)		12,092

OPERATING EXPENSES:
Depreciation, depletion, and amortization		1,041		—			2,042			—			3,083
Asset retirement obligation accretion		57		—			54			—			111
Lease operating expenses		797		—			1,235			—			2,032
Gathering and transportation		42		—			136			—			178
Taxes other than income		140		—			550			—			690
General and administrative		273		—			111			(4	)		380
Merger, acquisitions & transition		183		—			—			—			183
Financing costs, net		158		(19	)		90			—			229

		2,691		(19	)		4,218			(4	)		6,886

INCOME (LOSS) BEFORE INCOME TAXES		3,266		99			4,180			(2,339	)		5,206
Provision (benefit) for income taxes		234		25			1,915			—			2,174

NET INCOME (LOSS)		3,032		74			2,265			(2,339	)		3,032
Preferred stock dividends		32		—			—			—			32

INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK	$	3,000	$	74		$	2,265		$	(2,339	)	$	3,000

COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK	$	3,149	$	74		$	2,265		$	(2,339	)	$	3,149

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2012


	Apache Corporation			Apache Finance Canada			All Other Subsidiaries of Apache Corporation			Reclassifications & Eliminations			Consolidated
	(In millions)
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	2,357		$	(40	)	$	6,187		$	—		$	8,504

CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas property		(3,313	)		—			(5,468	)		—			(8,781	)
Additions to gas gathering, transmission, and processing facilities		(48	)		—			(702	)		—			(750	)
Acquisition of Cordillera		(2,666	)		—			—			—			(2,666	)
Equity investment in Yara Pilbara Holdings Pty Limited		—			—			(439	)		—			(439	)
Acquisitions, other		(66	)		—			(186	)		—			(252	)
Proceeds from sale of oil and gas properties		25			—			2			—			27
Investment in subsidiaries, net		(657	)		—			—			657			—
Other		(450	)		—			(113	)		—			(563	)

NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES		(7,175	)		—			(6,906	)		657			(13,424	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Commercial paper, credit facility, and bank notes, net		502			—			47			—			549
Intercompany borrowings		—			—			697			(697	)		—
Fixed rate debt borrowings		4,978			—			—			—			4,978
Payments on fixed rate debt		(400	)		—			—			—			(400	)
Dividends paid		(332	)		—			—			—			(332	)
Other		29			35			(114	)		40			(10	)

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		4,777			35			630			(657	)		4,785

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(41	)		(5	)		(89	)		—			(135	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR		41			5			249			—			295

CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	—		$	—		$	160		$	—		$	160

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2011


	Apache Corporation			Apache Finance Canada			All Other Subsidiaries of Apache Corporation			Reclassifications & Eliminations			Consolidated
	(In millions)
CASH PROVIDED BY OPERATING ACTIVITIES	$	2,191		$	13		$	7,749		$	—		$	9,953

CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas property		(1,478	)		—			(4,936	)		—			(6,414	)
Additions to gas gathering, transmission, and processing facilities		—			—			(664	)		—			(664	)
Acquisition of Mobil North Sea		—			—			(1,246	)		—			(1,246	)
Acquisitions, other		(448	)		—			(119	)		—			(567	)
Proceeds from sales of oil and gas properties		204			—			218			—			422
Investment in and advances to subsidiaries, net		772			—			—			(772	)		—
Other		(81	)		—			(95	)		—			(176	)

NET CASH USED IN INVESTING ACTIVITIES		(1,031	)		—			(6,842	)		(772	)		(8,645	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Commercial paper, credit facility, and bank notes, net		(927	)		—			2			—			(925	)
Intercompany borrowings		—			(1	)		(763	)		764			—
Dividends paid		(306	)		—			—			—			(306	)
Other		108			(7	)		(25	)		8			84

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		(1,125	)		(8	)		(786	)		772			(1,147	)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		35			5			121			—			161
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR		6			—			128			—			134

CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	41		$	5		$	249		$	—		$	295

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2010


	Apache Corporation			Apache Finance Canada			All Other Subsidiaries of Apache Corporation			Reclassifications & Eliminations			Consolidated
	(In millions)
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	(1,848	)	$	(100	)	$	8,674		$	—		$	6,726

CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas property		(1,552	)		—			(2,855	)		—			(4,407	)
Additions to gas gathering, transmission, and processing facilities		(4	)		—			(511	)		—			(515	)
Acquisitions of Devon properties		(1,018	)		—			—			—			(1,018	)
Acquisitions of BP properties		—			—			(6,429	)		—			(6,429	)
Mariner Energy, Inc. merger		—			—			(787	)		—			(787	)
Acquisitions, other		—			—			(126	)		—			(126	)
Investment in and advances to subsidiaries, net		(2,853	)		—			—			2,853			—
Other		(72	)		—			(49	)		—			(121	)

NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES		(5,499	)		—			(10,757	)		2,853			(13,403	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Commercial paper, credit facility, and bank notes, net		928			—			(960	)		—			(32	)
Intercompany borrowings		—			2			2,720			(2,722	)		—
Fixed-rate debt borrowings		2,470			—			—			—			2,470
Payments on fixed-rate notes		—			—			(1,023	)		—			(1,023	)
Proceeds from issuance of common stock		2,258			—			—			—			2,258
Proceeds from issuance of mandatory convertible preferred stock		1,227			—			—			—			1,227
Dividends paid		(226	)		—			—			—			(226	)
Other		49			96			75			(131	)		89

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		6,706			98			812			(2,853	)		4,763

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(641	)		(2	)		(1,271	)		—			(1,914	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR		647			2			1,399			—			2,048

CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	6		$	—		$	128		$	—		$	134

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2012


	Apache Corporation		Apache Finance Canada		All Other Subsidiaries of Apache Corporation			Reclassifications & Eliminations			Consolidated
	(In millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—	$	—	$	160		$	—		$	160
Receivables, net of allowance		876		—		2,210			—			3,086
Inventories		95		—		813			—			908
Drilling advances		21		1		562			—			584
Derivative instruments		31		—		—			—			31
Prepaid assets and other		3,868		—		(3,675	)		—			193

		4,891		1		70			—			4,962

PROPERTY AND EQUIPMENT, NET		18,517		—		34,763			—			53,280

OTHER ASSETS:
Intercompany receivable, net		4,628		—		(2,917	)		(1,711	)		—
Equity in affiliates		21,047		934		97			(22,078	)		—
Goodwill, net		173		—		1,116			—			1,289
Deferred charges and other		152		1,002		1,052			(1,000	)		1,206

	$	49,408	$	1,937	$	34,181		$	(24,789	)	$	60,737

LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	639	$	1	$	2,163		$	(1,711	)	$	1,092
Current debt		912		—		78			—			990
Asset retirement obligation		471		—		7			—			478
Derivative instruments		96		—		20			—			116
Other current liabilities		893		3		1,964			—			2,860

		3,011		4		4,232			(1,711	)		5,536

LONG-TERM DEBT		10,706		647		2			—			11,355

DEFERRED CREDITS AND OTHER NONCURRENT LIABILITIES:
Income taxes		2,990		5		5,029			—			8,024
Asset retirement obligation		992		—		3,108			—			4,100
Other		378		250		763			(1,000	)		391

		4,360		255		8,900			(1,000	)		12,515

COMMITMENTS AND CONTINGENCIES SHAREHOLDERS’ EQUITY		31,331		1,031		21,047			(22,078	)		31,331

	$	49,408	$	1,937	$	34,181		$	(24,789	)	$	60,737

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2011


	Apache Corporation		Apache Finance Canada		All Other Subsidiaries of Apache Corporation			Reclassifications & Eliminations			Consolidated
	(In millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	41	$	5	$	249		$	—		$	295
Receivables, net of allowance		773		—		2,306			—			3,079
Inventories		51		—		604			—			655
Drilling advances		11		—		218			—			229
Derivative instruments		113		—		191			—			304
Prepaid assets and other		3,859		—		(3,618	)		—			241

		4,848		5		(50	)		—			4,803

PROPERTY AND EQUIPMENT, NET		12,262		—		33,186			—			45,448

OTHER ASSETS:
Intercompany receivable, net		3,931		—		(1,908	)		(2,023	)		—
Equity in affiliates		20,214		1,372		99			(21,685	)		—
Goodwill, net		—		—		1,114			—			1,114
Deferred charges and other		158		1,002		526			(1,000	)		686

	$	41,413	$	2,379	$	32,967		$	(24,708	)	$	52,051

LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	609	$	1	$	2,461		$	(2,023	)	$	1,048
Current debt		400		—		31			—			431
Asset retirement obligation		434		—		13			—			447
Derivative instruments		76		—		37			—			113
Other current liabilities		614		5		2,305			—			2,924

		2,133		6		4,847			(2,023	)		4,963

LONG-TERM DEBT		6,137		647		1			—			6,785

DEFERRED CREDITS AND OTHER NONCURRENT LIABILITIES:
Income taxes		2,622		5		4,570			—			7,197
Asset retirement obligation		936		—		2,504			—			3,440
Other		592		250		831			(1,000	)		673

		4,150		255		7,905			(1,000	)		11,310

COMMITMENTS AND CONTINGENCIES SHAREHOLDERS’ EQUITY		28,993		1,471		20,214			(21,685	)		28,993

	$	41,413	$	2,379	$	32,967		$	(24,708	)	$	52,051