Deconsolidation of Altus cash and cash equivalents

  
APA CORPORATION AND SUBSIDIARIESSTATEMENT OF CONSOLIDATED CASH FLOWS(Unaudited)

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | For the Six Months EndedJune 30, |
|    |  | 2022 |  | 2021 |
|  |  |  |  |  |
|   |  | (In millions) |
| CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |  |  |
| Net income including noncontrolling interests |  | $ | 3,013  |  |  | $ | 858  |  |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |
| Unrealized derivative instrument losses, net |  | 83  |  |  | 55  |  |
| Gain on divestitures, net |  | (1,149) |  |  | (67) |  |
| Exploratory dry hole expense and unproved leasehold impairments |  | 47  |  |  | 46  |  |
| Depreciation, depletion, and amortization |  | 569  |  |  | 693  |  |
| Asset retirement obligation accretion |  | 58  |  |  | 56  |  |
|  |  |  |  |  |
| Benefit from deferred income taxes |  | (60) |  |  | (23) |  |
| (Gain) loss on extinguishment of debt |  | 67  |  |  | (1) |  |
|  |  |  |  |  |
| Other, net |  | (88) |  |  | (14) |  |
| Changes in operating assets and liabilities: |  |  |  |  |
| Receivables |  | (519) |  |  | (165) |  |
| Inventories |  | (18) |  |  | 20  |  |
| Drilling advances and other current assets |  | 28  |  |  | 43  |  |
| Deferred charges and other long-term assets |  | (11) |  |  | (18) |  |
| Accounts payable |  | 206  |  |  | 157  |  |
| Accrued expenses |  | 202  |  |  | 17  |  |
| Deferred credits and noncurrent liabilities |  | (2) |  |  | (17) |  |
| NET CASH PROVIDED BY OPERATING ACTIVITIES |  | 2,426  |  |  | 1,640  |  |
| CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |  |  |
| Additions to upstream oil and gas property |  | (741) |  |  | (558) |  |
|  |  |  |  |  |
| Leasehold and property acquisitions |  | (26) |  |  | (3) |  |
|  |  |  |  |  |
|  |  |  |  |  |
| Proceeds from sale of oil and gas properties |  | 751  |  |  | 181  |  |
| Proceeds from sale of Kinetik shares |  | 224  |  |  | —  |  |
| Deconsolidation of Altus cash and cash equivalents |  | (143) |  |  | —  |  |
| Other, net |  | (49) |  |  | (13) |  |
| NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES |  | 16  |  |  | (393) |  |
| CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |  |  |
| Payments on revolving credit facilities, net |  | (267) |  |  | (150) |  |
| Proceeds from Altus credit facility, net |  | —  |  |  | 33  |  |
|  |  |  |  |  |
|  |  |  |  |  |
| Payments on Apache fixed-rate debt |  | (1,370) |  |  | (20) |  |
| Distributions to noncontrolling interest - Egypt |  | (159) |  |  | (60) |  |
| Distributions to Altus Preferred Unit limited partners |  | (11) |  |  | (23) |  |
| Treasury stock activity, net |  | (552) |  |  | —  |  |
| Dividends paid to APA common stockholders |  | (86) |  |  | (19) |  |
| Other, net |  | (17) |  |  | (21) |  |
| NET CASH USED IN FINANCING ACTIVITIES |  | (2,462) |  |  | (260) |  |
|  |  |  |  |  |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |  | (20) |  |  | 987  |  |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR |  | 302  |  |  | 262  |  |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD |  | $ | 282  |  |  | $ | 1,249  |  |
|  |  |  |  |  |
| SUPPLEMENTARY CASH FLOW DATA: |  |  |  |  |
| Interest paid, net of capitalized interest |  | $ | 172  |  |  | $ | 233  |  |
| Income taxes paid, net of refunds |  | 637  |  |  | 231  |  |

   
The accompanying notes to consolidated financial statements are an integral part of this statement.3
