BUSINESS SEGMENT INFORMATION

Apache is engaged in a single line of business. Both domestically and internationally, the Company explores for, develops, and produces natural gas, crude oil, and natural gas liquids. At June 30, 2017, the Company had production in four reporting segments: the United States, Canada, Egypt, and offshore the United Kingdom in the North Sea (North Sea). Apache also has exploration interests in Suriname that may, over time, result in a reportable discovery and development opportunity. Financial information for each area is presented below:



	United States			Canada			Egypt⁽¹⁾		North Sea		Other International			Total
	(In millions)
For the Quarter Ended June 30, 2017
Oil and Gas Production Revenues	$	491		$	93		$	521	$	241	$	—		$	1,346
Operating Income (Loss)⁽²⁾	$	(17	)	$	(18	)	$	213	$	4	$	(2	)	$	180
Other Income (Expense):
Loss on divestitures, net														(21		)
Other														59
General and administrative														(106		)
Transaction, reorganization, and separation														(4		)
Financing costs, net														(99		)
Income Before Income Taxes														$	9

For the Six Months Ended June 30, 2017
Oil and Gas Production Revenues	$	1,043		$	195		$	1,112	$	508	$	—		$	2,858
Operating Income (Loss)⁽²⁾	$	43		$	(31	)	$	514	$	42	$	(23	)	$	545
Other Income (Expense):
Gain on divestitures, net														320
Other														84
General and administrative														(209		)
Transaction, reorganization, and separation														6
Financing costs, net														(199		)
Income Before Income Taxes														$	547
Total Assets	$	12,530		$	1,476		$	4,778	$	3,772	$	46		$	22,602



	United States			Canada			Egypt⁽¹⁾		North Sea			Other International			Total
	(In millions)
For the Quarter Ended June 30, 2016
Oil and Gas Production Revenues	$	520		$	73		$	542	$	251		$	—		$	1,386
Operating Income (Loss)⁽³⁾	$	(109	)	$	(57	)	$	220	$	(115	)	$	—		$	(61	)
Other Income (Expense):
Gain on divestitures, net															17
Other															(21		)
General and administrative															(103		)
Transaction, reorganization, and separation															(9		)
Financing costs, net															(104		)
Loss Before Income Taxes															$	(281	)

For the Six Months Ended June 30, 2016
Oil and Gas Production Revenues	$	929		$	156		$	934	$	454		$	—		$	2,473
Operating Income (Loss)⁽³⁾	$	(267	)	$	(118	)	$	261	$	(101	)	$	(1	)	$	(226	)
Other Income (Expense):
Gain on divestitures, net															16
Other															(24		)
General and administrative															(196		)
Transaction, reorganization, and separation															(24		)
Financing costs, net															(209		)
Loss Before Income Taxes															$	(663	)
Total Assets	$	12,383		$	2,070		$	5,520	$	4,326		$	47		$	24,346


(1)	Includes a noncontrolling interest in Egypt.

(2)

Operating income (loss) consists of oil and gas production revenues less lease operating expenses, gathering and transportation costs, taxes other than income, exploration costs, depreciation, depletion, and amortization, asset retirement obligation accretion, and impairments. The operating income (loss) of U.S. and Canada includes leasehold impairments totaling $38 million and $1 million, respectively, for the second quarter of 2017. The operating income (loss) of U.S., Canada, and North Sea includes leasehold and other asset impairments totaling $52 million, $2 million, and $8 million, respectively, for the first six months of 2017.

(3)

The operating income (loss) of U.S., Canada, and North Sea includes leasehold, property, and other asset impairments totaling $125 million, $9 million, and $105 million, respectively, for the second quarter of 2016. The operating income (loss) of U.S., Canada, and North Sea includes leasehold, property, and other asset impairments totaling $166 million, $10 million, and $105 million, respectively, for the first six months of 2016.