APA (APA) 10-K risk factor changes: FY2022 vs FY2021

[removed: The COVID-19 pandemic has and] [added: Global pandemics have previously,] may continue [removed: to] [added: to, and may in the future] adversely impact the Company’s business, financial condition, and results of operations, the global economy, and the demand for and prices of oil, natural gas, and [removed: NGLs.][added: NGLs.]

[removed: The COVID-19 pandemic] [added: Global pandemics] and the actions taken by third parties, including, but not limited to, governmental authorities, businesses, and consumers, in response to [added: such pandemics, including] the [removed: pandemic] [added: COVID-19 pandemic,] have [added: previously] adversely impacted [added: and may from time to time in] the [added: future adversely impact the] global [removed: economy and created] [added: economy, resulting in] significant volatility in the global financial markets.

[removed: Business] [added: Previous business] closures, restrictions on travel, “stay-at-home” or “shelter-in-place” orders, and other restrictions on movement within and among communities [removed: have] significantly reduced demand [removed: for] [added: for,] and the prices [removed: of] [added: of,] oil, natural gas, and [removed: NGLs.][added: NGLs, and such restrictions may be continued or reintroduced at any time.]

A continued, prolonged period or a renewed period of reduced demand, the failure to timely distribute or the ineffectiveness of or reluctance or refusal of individuals to take any vaccines, the failure to develop [added: or reformulate] adequate treatments, [added: including due to the emergence of new variants,] and other adverse impacts from [removed: the] [added: a] pandemic may materially adversely affect the Company’s business, financial condition, cash flows, and results of operations.

The Company’s operations rely on its workforce [removed: being able to] [added: having] access [added: to] its wells, platforms, structures, [removed: and facilities located upon or used in connection with its oil] [added: offices,] and [removed: gas leases.][added: facilities.]

If a significant portion of the Company’s workforce cannot effectively perform their responsibilities, whether resulting from a lack of physical or virtual access, quarantines, illnesses, governmental actions or [removed: restrictions, including] [added: restrictions (including] vaccine mandates and the reactions [removed: thereto, information technology or telecommunication failures,] [added: thereto),] or other restrictions or adverse impacts resulting from [removed: the] [added: a] pandemic, the Company’s business, financial condition, cash flows, and results of operations may be materially adversely affected.

[removed: Such] [added: Actual] results will depend on future events, which the Company cannot predict, including the scope, duration, and potential reoccurrence of [removed: the COVID-19] [added: any such] pandemic, the emergence and impact of [removed: COVID-19] variants, [removed: or any other localized epidemic or global pandemic,] the distribution and effectiveness [removed: of] [added: of, and individual willingness to take,] vaccines, therapeutics, and treatments, the demand [removed: for] [added: for,] and the prices [removed: of] [added: of,] oil, natural gas, and NGLs, and the actions taken by third [removed: parties, including, but not limited to, governmental authorities, customers, contractors, and suppliers,] [added: parties] in response to [removed: the COVID-19 pandemic or] any [removed: other epidemics or pandemics.][added: of the foregoing.]

Crude oil, natural gas, and NGL [removed: price] [added: prices and their] volatility could adversely affect the Company’s operating results and the price of APA’s common stock.

The Company’s revenues, operating results, and future rate of growth depend highly upon the prices it receives for its [added: sales of] crude oil, natural gas, and NGL [removed: production.][added: products.]

For example, the NYMEX daily settlement price for the prompt month oil contract in [removed: 2021] [added: 2022] ranged from a high of [removed: $85.64] [added: $123.64] per barrel to a low of [removed: $47.47] [added: $71.05] per [removed: barrel.][added: barrel, and the NYMEX daily settlement price for the prompt month natural gas contract in 2022 ranged from a high of $9.85 per MMBtu to a low of $3.46 per MMBtu.]

[added: The market prices for] crude oil, natural gas, and NGLs depend on factors beyond the Company’s control.

- worldwide and domestic supplies [added: and/or inventories] of crude oil, natural gas, and NGLs;

- actions taken by foreign oil and gas producing nations, including the Organization of the Petroleum Exporting Countries [removed: (OPEC);][added: (OPEC) and non-OPEC members that participate in OPEC initiatives (OPEC+);]

- political conditions and events (including [removed: instability,] [added: instabilities,] changes in governments, or armed [removed: conflict)] [added: conflicts)] in oil and gas producing regions;

- the occurrence of global [removed: events] [added: events,] such as epidemics or pandemics (including, specifically, the COVID-19 [removed: pandemic)] [added: pandemic),] and the actions taken by third parties, including, but not limited to, governmental authorities, customers, contractors, and suppliers, in response to such epidemics or pandemics;

- the price and level of imported foreign [added: or exported domestic] crude oil, natural gas, and [removed: NGLs;][added: NGLs, including as a result of the availability of facilities that process, import, or export such products;]

- the impact of political pressure and the influence of environmental groups and other stakeholders on decisions and policies related to the industries in which the Company and its affiliates [removed: operate;][added: operate, including with respect to environmental, social, and governance matters;]

- domestic and foreign governmental regulations and taxes, including legislative, regulatory, [added: and] policy [removed: changes,] [added: changes] or initiatives [removed: and addressing] [added: to address] the [removed: impact] [added: impacts] of global climate change, hydraulic fracturing, methane emissions, flaring, or water disposal; and

- causing the Company to delay or postpone some of its capital [removed: projects;][added: projects or reallocate capital to different projects or regions;]

The Company’s ability to sell crude oil, natural gas, or [removed: NGLs and/or] [added: NGLs,] receive market prices for these [removed: commodities] [added: commodities,] and/or meet volume commitments under transportation services agreements may be adversely affected by pipeline and gathering system capacity constraints, the inability to procure and resell volumes economically, and various transportation interruptions.

A portion of the Company’s crude oil, natural gas, and NGL production in any region may be interrupted, limited, or shut in from time to time for numerous reasons, including as a result of weather conditions, accidents, loss of pipeline or gathering system access, field labor issues or strikes, [added: cyberattacks] or [added: terrorist events, or] capital constraints that limit the ability of third parties to construct gathering [added: systems, processing facilities, or interstate pipelines to transport the Company’s production.]

[removed: systems, processing facilities, or interstate pipelines to transport the Company’s production, or] [added: Additionally,] the Company [removed: might] [added: may] voluntarily curtail production in response to market conditions.

If a substantial amount of the Company’s production is interrupted [added: or curtailed] at the same time, it could temporarily adversely affect the Company’s cash flows.

[removed: Additionally,] [added: Further,] if the Company is unable to procure and resell third-party volumes at or above a net price that covers the cost of transportation, the Company’s cash flows could be adversely affected.

The Company [added: has previously not realized, and] may [added: in the future] not [removed: realize] [added: realize,] an adequate return on wells that it drills.

The seismic data and other technologies [added: that] the Company uses do not allow it to know conclusively prior to drilling a well that crude or natural gas is present or may be produced economically.

The costs of drilling, completing, and operating wells are often uncertain, and drilling operations may be curtailed, delayed, or canceled as a result of a variety of [removed: factors] [added: factors,] including, but not limited [removed: to:][added: to, unexpected drilling conditions; pressure or irregularities in formations; equipment failures or accidents; fires, explosions, blowouts, and surface cratering; marine risks, such as capsizing, collisions, and hurricanes; other adverse weather conditions; and increases in the cost of or shortages or delays in the availability of drilling rigs, equipment, and labor.]

The Company’s reserves estimates are based on 12-month average prices, except where contractual arrangements exist; therefore, [added: reserves quantities will change when actual prices increase or decrease.]

The estimates of the Company’s proved reserves and estimated future net revenues also depend on a number of factors and assumptions that may vary considerably from actual results, [removed: including:][added: including historical production from the area compared with production from other areas, the effects of regulations by governmental agencies, including changes to severance and excise taxes, future operating costs and capital expenditures, and workover and remediation costs.]

The distressed financial conditions of the Company’s [removed: purchasers and] partners [added: and the purchasers of the Company’s products or assets] have had and could have an adverse impact on the Company in the event they are unable to [added: reimburse the Company for their share of costs or to] pay the Company for the products or services [removed: it provides or to reimburse it for their share of costs.][added: the Company provides.]

From time to time the Company [removed: has divested] [added: divests] noncore or nonstrategic domestic and international assets.

The agreements relating to these transactions contain provisions pursuant to which liabilities related to past and future operations have been allocated between the parties by means of liability assumptions, indemnities, escrows, trusts, bonds, letters of credit, and similar [removed: arrangements.]

For additional information regarding Apache’s prior Gulf of Mexico properties and the bankruptcy of the purchaser of those properties, see the information set forth under “Potential [removed: Obligation to Decommission] [added: Decommissioning Obligations on] Sold Properties” in [Note 11—Commitments and [removed: Contingencies](#id69a2274c08240fd88f623fae590066c_202)] [added: Contingencies](#i6237445a6a004121a7d3f066ad8153fe_205)] in the Notes to Consolidated Financial Statements set forth in Item 15 of this Annual Report on Form 10-K.

The Company does not always control decisions made under joint operating [removed: agreements,] [added: agreements or joint ventures,] and the parties [removed: under] [added: to] such agreements [added: or ventures] may fail to meet their obligations.

The Company [removed: conducts many of its exploration and production (E&P) operations through joint operating agreements with other parties under which the Company] may not control [removed: decisions,] [added: decisions made under such agreements or ventures,] either because it does not have a controlling interest [added: in the venture] or is not an operator under the agreement.

There is risk that [removed: these] [added: the other] parties [added: to these arrangements] may [removed: at any time] have economic, business, or legal interests or goals that are inconsistent with the Company’s, [removed: and] [added: and,] therefore, decisions may be made that the Company does not believe are in its best interest.

Moreover, parties to [removed: these] [added: such] agreements [added: or ventures] may be unable to meet their economic or other obligations, [added: and the Company may be required to fulfill those obligations alone.]

In either case, the value of the investment [added: and the Company’s business and financial condition] may be adversely affected.

During [removed: 2021,] [added: 2022,] the Company’s credit rating was affirmed by Moody’s [removed: to Ba1/Stable] [added: as Ba1/Positive] and by Standard and Poor’s [removed: to BB+/Stable.][added: as BB+/Positive.]

[removed: Unfavorable] [added: Unfavorable] ESG ratings [removed: and funding limitation initiatives] may lead to negative investor and public sentiment toward the [removed: Company and to] [added: Company, which may cause] the [removed: diversion of capital from] [added: market for] the Company’s [removed: industry.][added: securities to be negatively impacted.]

- increasing inflationary pressure;

- increased competitiveness of, and demand for, alternative energy sources;

- technological advances affecting energy supply and energy consumption, including those that alter fuel choices;

Management has previously determined, and may in the future determine, that future or further drilling or development activities will not, or are unlikely to, occur for a well or reservoir based

on drilling results, current or future estimated commodity prices or demand for oil, natural gas, and NGLs, or other information, including drilling results in, or information related to, adjacent or nearby geographic areas or similar geologies or reservoirs.

Exploration costs and dry hole expenses incurred by the Company during the reporting period are further discussed in this Annual Report on Form 10-K and reflected in the consolidated financial statements included herein.

In addition, the Company’s hedging arrangements may expose it to the risk of financial loss in certain circumstances, including instances in which the Company’s production falls short of the hedged volumes, there is a widening of price-basis differentials between delivery points for the Company’s production and the delivery point assumed in the hedge arrangement, the counterparties to the Company’s hedging or other price risk management contracts fail to perform under those arrangements, or an unexpected event materially impacts commodity prices.

The Company’s operations are subject to hazards and risks inherent in the drilling, production, and transportation of crude oil, natural gas, and NGLs, including well blowouts, explosions, fires, and cratering; pipeline or other facility ruptures and spills; formations with abnormal pressures; equipment malfunctions; hurricanes, major storms, and cyclones, which could affect the Company’s operations in areas such as on and offshore the Gulf Coast, North Sea, and Suriname, and other natural and anthropogenic disasters and weather conditions; and surface spillage and surface or ground water contamination from petroleum constituents, saltwater, or hydraulic fracturing chemical additives.

arrangements.

The Company conducts many of its exploration and production (E&P) operations through joint operating agreements or joint ventures with other parties.

The Company’s syndicated credit facilities currently mature in April 2027.

In addition, a number of advocacy groups, both domestically and internationally, have campaigned for governmental and private action to influence change in the business strategies in oil and gas companies, including through the investment and voting practices of investment advisers, public pension funds, universities, and other members of the investing community.

These activities include increasing attention and demands for action related to climate change and energy transition matters, such as promoting the use of substitutes to fossil fuel products and encouraging the divestment of investments in the oil and gas industry, as well as pressuring lenders and other financial services companies to limit or curtail activities with oil and gas companies.

If investors or financial institutions shift funding away from companies in the oil and gas industry, the Company’s access to and costs of capital or the market for the Company’s securities may be negatively impacted.

As a consequence, the Company

On May 26, 2022, the U.K. Chancellor of the Exchequer announced a new tax (the Energy Profits Levy) on the profits of oil and gas companies operating in the U.K. and the U.K. Continental Shelf.

Under the new law, an additional levy is assessed at a 25 percent rate and is effective for the period of May 26, 2022, through December 31, 2025.

On November 17, 2022, the U.K. Chancellor of the Exchequer announced in the Autumn Statement 2022 further changes to the Energy Profits Levy, increasing the levy assessed from a 25 percent rate to a 35 percent rate, effective for the period of January 1, 2023, through March 31, 2028.

On November 22, 2022, the U.K. Government published draft legislation to implement this change, among other provisions, and on January 10, 2023, the Finance Act 2023 was enacted, receiving Royal Assent.

The impact of this tax could adversely affect the Company’s future financial condition and cash flows.

On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022 (IRA).

Among other changes, the IRA introduced a new 15% corporate alternative minimum tax (Corporate AMT) for taxable years beginning after December 31, 2022 on applicable corporations with an average annual adjusted financial statement income (AFSI) that exceeds $1.0 billion for any three consecutive tax years preceding the tax year at issue.

If the Company were to meet this average AFSI test, any resulting Corporate AMT liability could adversely affect the Company’s future financial results, including earnings and cash flows.

Additionally, the IRA introduced a 1% excise tax on the fair market value of applicable stock repurchases after December 31, 2022.

The impact of this provision will be dependent on the extent of any share repurchases made by the Company in future periods and could adversely affect the Company’s future financial condition and cash flows.

The impacts of energy transition could adversely affect the Company’s business, operating results, and financial condition.

In recent years, increasing attention has been given to corporate activities related to climate change and energy transition.

This focus, together with shifting preferences and attitudes with respect to the generation and consumption of energy, the use of hydrocarbons, and the use of products manufactured with, or powered by, hydrocarbons, may result in increased availability of, and demand for, energy sources other than oil and natural gas, including wind, solar, and hydroelectric power; technological advances with respect to the generation, transmission, storage, and consumption of alternative energy sources; and development of, and increased demand from consumers and industries for, lower-emission products and services, including electric vehicles and renewable residential and commercial power supplies, as well as more energy-efficient products and services.

These developments could adversely impact the demand for products powered by or manufactured with hydrocarbons and the demand for the Company’s, and in turn the prices it receives for its, crude oil, natural gas, and NGL products, which could materially and adversely affect the Company’s business and financial performance.

prepared base-case pricing analysis averaged out to 2040.

In response to concerns regarding induced seismicity, regulators in some states have imposed, or are considering imposing, additional requirements in the permitting of produced water disposal wells to assess any relationship between seismicity and the use of such wells.

Among other things, these rules require companies seeking permits for disposal wells to provide seismic activity data in permit applications, provide for more frequent monitoring and reporting for certain wells, and allow the state to modify, suspend, or terminate permits on grounds that a disposal well is likely to be, or determined to be, causing seismic activity.

States may issue orders to temporarily shut down or to curtail the injection depth of existing wells in the vicinity of seismic events.

Increased regulation and attention given to induced seismicity could also lead to greater opposition, including litigation to limit or prohibit oil and natural gas activities utilizing injection wells for produced water disposal.

Uncertainty surrounding military strikes or a sustained military campaign may affect operations in unpredictable

The unprecedented nature of the current situation makes it impossible for the Company to identify all potential risks related to the pandemic or estimate the ultimate adverse impact that the pandemic may have on its business.

As of the date of this Annual Report on Form 10-K, efforts to contain COVID-19 have not been successful in many regions, vaccination distribution programs have encountered delays, new variants have emerged, and the global pandemic remains ongoing.

While some geographic regions have lifted, relaxed, or otherwise modified their pandemic response measures to lessen the impact of such measures on business operations and commerce, these regions may reinstitute restrictions as circumstances change.

Additionally, because the Company has previously implemented, and may elect to or be required in the future to reimplement, remote working procedures for a significant portion of its workforce for health and safety reasons and/or to comply with applicable national, state, and/or local government requirements, the Company relies on such persons having sufficient access to its information technology systems, including through telecommunication hardware, software, and networks.

The unprecedented nature of the current situation resulting from the COVID-19 pandemic makes it impossible for the Company to identify all potential risks related to the pandemic or estimate the ultimate adverse impact that the pandemic may have on its business, financial condition, cash flows, or results of operations.

The COVID-19 pandemic and its unprecedented consequences have amplified, and may continue to amplify, the other risks identified in this Annual Report on Form 10-K.

The NYMEX daily settlement price for the prompt month natural gas contract in 2021 ranged from a high of $23.86 per MMBtu to a low of $2.43 per MMBtu.

The market prices for

- the level of global crude oil and natural gas inventories;

- unexpected drilling conditions;

- pressure or irregularities in formations;

- equipment failures or accidents;

- fires, explosions, blowouts, and surface cratering;

- marine risks, such as capsizing, collisions, and hurricanes;

- other adverse weather conditions; and

- increases in the cost of or shortages or delays in the availability of drilling rigs and equipment.

In addition, the Company’s hedging arrangements may expose it to the risk of financial loss in certain circumstances, including instances in which:

- the Company’s production falls short of the hedged volumes;

- there is a widening of price-basis differentials between delivery points for the Company’s production and the delivery point assumed in the hedge arrangement;

- the counterparties to the Company’s hedging or other price risk management contracts fail to perform under those arrangements; or

- an unexpected event materially impacts commodity prices.

The Company’s operations are subject to hazards and risks inherent in the drilling, production, and transportation of crude oil, natural gas, and NGLs, including:

- well blowouts, explosions, fires, and cratering;

- pipeline or other facility ruptures and spills;

- formations with abnormal pressures;

- equipment malfunctions;

- hurricanes, major storms, and cyclones, which could affect the Company’s operations in areas such as on and offshore the Gulf Coast, North Sea, and Suriname, and other natural and anthropogenic disasters and weather conditions; and

- surface spillage and surface or ground water contamination from petroleum constituents, saltwater, or hydraulic fracturing chemical additives.

reserves quantities will change when actual prices increase or decrease.

- historical production from the area compared with production from other areas;

- the effects of regulations by governmental agencies, including changes to severance and excise taxes;

- future operating costs and capital expenditures; and

- workover and remediation costs.

and the Company may be required to fulfill those obligations alone.

The Company own an approximate 79 percent interest in Altus, which holds substantially all of Apache’s former gathering, processing, and transmission assets in Alpine High.

Altus may be subject to different risks than those described in this Annual Report on Form 10-K.

The Company owns an approximate 79 percent interest in Altus, which holds substantially all of Apache’s former gathering, processing, and transmission assets in Alpine High.

Altus owns, develops, and operates a midstream energy asset network in the Permian Basin of West Texas, anchored by midstream service contracts to service the Company’s production from Apache’s Alpine High resource play.

Altus generates revenue by providing fee-based natural gas gathering, compression, processing, and transmission services and through its Equity Method Interest Pipelines.

Given the nature of its business, Altus may be subject to different and additional risks than those described in this Annual Report on Form 10-K.

This section of this Annual Report on Form 10-K generally discusses [removed: 2021] [added: 2022] and [removed: 2020] [added: 2021] items and year-to-year comparisons between [removed: 2021] [added: 2022] and [removed: 2020.][added: 2021.]

Discussions of [removed: 2019] [added: 2020] items and year-to-year comparisons between [removed: 2020] [added: 2021] and [removed: 2019] [added: 2020] that are not included in this Annual Report on Form 10-K are incorporated by reference to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of Apache Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, [removed: 2020] [added: 2021] (filed with the SEC on February [removed: 25, 2021).][added: 22, 2022).]

[removed: In connection with the] [added: On March 1, 2021, Apache Corporation consummated a holding company reorganization (the] Holding Company [removed: Reorganization,] [added: Reorganization), pursuant to which] Apache Corporation became a direct, wholly owned subsidiary of APA Corporation, and all of Apache Corporation’s outstanding shares [removed: were] automatically converted into equivalent corresponding shares of APA Corporation.

APA is an independent energy company that [removed: explores] [added: owns consolidated subsidiaries that explore] for, [removed: develops,] [added: develop,] and [removed: produces] [added: produce] natural gas, crude oil, and natural gas liquids (NGLs).

APA also has active exploration and appraisal operations ongoing in Suriname, as well as interests in [added: the Dominican Republic and] other international locations that may, over time, result in reportable discoveries and development opportunities.

Altus [removed: owns, develops,] [added: owned, developed,] and [removed: operates] [added: operated] a midstream energy asset network in the Permian Basin of West Texas.

APA [removed: believes society can accomplish both and] strives to meet those challenges while creating value for all its stakeholders.

Despite these uncertainties, the Company remains committed to its longer-term objectives: (1) to maintain a balanced asset portfolio, including advancement of ongoing exploration and appraisal activities offshore Suriname; (2) to invest for long-term returns over production growth; and (3) to budget conservatively to generate cash flow in excess of its upstream exploration, appraisal, and development capital program that can be directed to debt reduction, share repurchases, and other return of capital to its [removed: stakeholders.][added: shareholders.]

During [removed: 2021,] [added: 2022,] the Company reported net income attributable to common stock of [removed: $973 million,] [added: $3.7 billion,] or [removed: $2.59] [added: $11.02] per diluted share, compared to [removed: a] net [removed: loss] [added: income] of [removed: $4.9 billion,] [added: $973 million,] or [removed: $12.86] [added: $2.59] per diluted share, in [removed: 2020.][added: 2021.]

The Company generated [removed: $3.5] [added: $4.9] billion of cash from operating activities in [removed: 2021,] [added: 2022,] which was [removed: $2.1] [added: $1.4] billion or [removed: 152] [added: 41] percent higher than the prior year.

APA’s higher operating cash flows for [removed: 2021] [added: 2022] were driven by higher crude oil and natural gas prices and associated revenues.

[removed: -] The Company [removed: implemented a] [added: remains committed to its] capital return framework [removed: during] [added: established in] 2021 for equity holders to participate more directly and materially in cash returns.

[added: -] The Company believes returning 60 percent of cash flow over capital investment creates a good balance for providing near-term cash returns to shareholders while still recognizing the importance of longer-term balance sheet strengthening.

[removed: - The Company announced a quarterly dividend increase in] [added: During] the third quarter of [removed: 2021 from $0.025] [added: 2021, the Company’s Board of Directors approved an increase in its quarterly dividend] per share [added: from $0.025] to $0.0625 [removed: per share] and, in the fourth quarter of 2021, [removed: announced] a further increase to $0.125 per share.

- [removed: During] [added: Beginning in] the fourth quarter of [removed: 2021,] [added: 2021 and through] the [removed: Company’s Board] [added: end] of [removed: Directors authorized] [added: 2022,] the [removed: purchase of up to 40] [added: Company has repurchased 67.4] million shares of the Company’s common stock.

The Company [added: also] repurchased [removed: approximately 31.2] [added: 36.2] million [added: shares] of its common [removed: shares] [added: stock] for [removed: $847 million] [added: $1.4 billion] during [removed: the fourth quarter of 2021.][added: 2022.]

As of December 31, [removed: 2021,] [added: 2022,] the Company had remaining authorization to repurchase up to [removed: 48.8] [added: 52.6] million shares under [added: the] Company’s share repurchase programs.

[removed: - Daily] [added: *•*Daily] boe production from the Company’s U.S. assets, which decreased [removed: 10] [added: 8] percent from the prior year end, accounted for [removed: 59] [added: 53] percent of its total worldwide production during [removed: 2021.][added: 2022.]

As consideration for the [removed: transaction,] [added: contribution of the Contributed Interests,] ALTM [removed: will issue] [added: issued] 50 million shares of Class C Common Stock (and [removed: its subsidiary,] Altus Midstream [removed: LP, will issue] [added: LP issued] a corresponding number of common units) to BCP’s [removed: unitholders, which are principally funds affiliated with Blackstone and I Squared Capital.][added: unitholders.]

- In December 2021, the Egyptian President signed and ratified the previously announced agreement with the Egyptian Ministry of Petroleum and the Egyptian General Petroleum Corporation (EGPC) to modernize the terms of the majority of the Company’s production-sharing [removed: contracts (PSCs),] [added: contracts,] having an effective date of April 1, 2021.

The new [removed: PSC consolidates] [added: merged concession agreement (MCA) consolidated] 98 percent of gross acreage and 90 percent of gross production [removed: into a single] [added: under one] concession [added: agreement] and refreshes the existing development lease terms for 20 years and exploration leases for 5 years.

The Company continues to build and enhance its [removed: robust] drilling inventory in Egypt, supplemented with recent seismic acquisitions and new play concept [removed: evaluations,] [added: evaluations] on both new and existing acreage.

- The North Sea maintained two drilling rigs during [removed: 2021.][added: 2022.]

[removed: TotalEnergies] [added: APA] holds a 50 percent working interest in Block [removed: 58.][added: 58, with TotalEnergies, the operator, holding the other 50 percent working interest.]

Most recently, the Company has completed a series of [added: acquisitions and] divestitures designed to [removed: monetize nonstrategic assets and] enhance the Company’s portfolio [added: and monetize nonstrategic assets] in order to allocate resources to more impactful exploration and development opportunities.

These [added: acquisitions and] divestitures [added: during 2022] include:

- *U.S. Leasehold Divestitures & [removed: Acquisitions*] [added: Other*] During [removed: 2021,] [added: 2022,] the Company completed the sale of [removed: other] non-core assets and leasehold [removed: acreage, primarily] in [removed: the Permian Basin, in] multiple transactions for total cash proceeds of [removed: $80] [added: $52] million.

[removed: Also during] [added: *Leasehold and Property Acquisitions* During 2022 and] 2021, the Company completed leasehold and property acquisitions, primarily in the Permian Basin, for total cash consideration of [added: $37 million and] $9 [removed: million.][added: million, respectively.]

[removed: *•U.S.] [added: - *U.S.] Leasehold [removed: Divestitures & Other*] [added: Acquisitions*] During [removed: 2020,] [added: 2022,] the Company completed [removed: the sale of certain non-core producing assets and] [added: other] leasehold [removed: acreage,] [added: and property acquisitions,] primarily in the Permian Basin, [removed: in multiple transactions] for total cash [removed: proceeds] [added: consideration] of [removed: $87] [added: approximately $37] million.

For detailed information regarding APA’s acquisitions and divestitures, refer to [Note 2—Acquisitions and [removed: Divestitures](#id69a2274c08240fd88f623fae590066c_175)] [added: Divestitures](#i6237445a6a004121a7d3f066ad8153fe_178)] in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K.

[removed: Oil] [added: Oil, Natural Gas,] and [added: Natural] Gas [added: Liquids] Production Revenues

The Company’s [removed: oil and gas] production revenues and respective contribution to total revenues by country are as follows:

| | | | | | | [removed: 2021] [added: 2022] | | | | | | | | | | | | [removed: 2020] [added: 2021] | | | | | | | | | | | | [removed: 2019] [added: 2020] | | | | | | | | |

| United States | | | | | | $ | [removed: 1,850] [added: 2,458] | | | | | [removed: 40] [added: 36] | | % | | | | $ | [removed: 1,209] [added: 1,850] | | | | | [removed: 39] [added: 40] | | % | | | | $ | [removed: 2,098] [added: 1,209] | | | | | [removed: 40] [added: 39] | | % |

| Egypt(1) | | | | | | [removed: 1,806] [added: 3,145] | | | | | | [removed: 40] [added: 46] | | % | | | | [removed: 1,102] [added: 1,806] | | | | | | [removed: 35] [added: 40] | | % | | | | [removed: 1,969] [added: 1,102] | | | | | | [removed: 38] [added: 35] | | % |

| North Sea | | | | | | [removed: 929] [added: 1,232] | | | | | | [removed: 20] [added: 18] | | % | | | | [removed: 795] [added: 929] | | | | | | [removed: 26] [added: 20] | | % | | | | [removed: 1,163] [added: 795] | | | | | | [removed: 22] [added: 26] | | % |

| Total(1) | | | | | | $ | [removed: 4,585] [added: 6,835] | | | | | 100 | | % | | | | $ | [removed: 3,106] [added: 4,585] | | | | | 100 | | % | | | | $ | [removed: 5,230] [added: 3,106] | | | | | 100 | | % |

| United States | | | | | | $ | [removed: 754] [added: 918] | | | | | [removed: 62] [added: 59] | | % | | | | $ | [removed: 251] [added: 754] | | | | | [removed: 42] [added: 62] | | % | | | | $ | [removed: 293] [added: 251] | | | | | [removed: 43] [added: 42] | | % |

| Egypt(1) | | | | | | [removed: 270] [added: 370] | | | | | | 23 | | % | | | | [removed: 280] [added: 270] | | | | | | [removed: 47] [added: 23] | | % | | | | [removed: 295] [added: 280] | | | | | | [removed: 44] [added: 47] | | % |

| North Sea | | | | | | [removed: 183] [added: 281] | | | | | | [removed: 15] [added: 18] | | % | | | | [removed: 67] [added: 183] | | | | | | [removed: 11] [added: 15] | | % | | | | [removed: 90] [added: 67] | | | | | | [removed: 13] [added: 11] | | % |

As a holding company, APA Corporation’s primary assets are its ownership interests in its subsidiaries.

Prior to the BCP Business Combination defined below, the Company’s midstream business was operated by Altus.

Early in 2020, impacts of the coronavirus disease 2019 (COVID-19) pandemic and related governmental actions began to exert significant downward pressure on crude oil and natural gas prices.

Since that time, commodity prices worldwide have largely rebounded; however, uncertainties in the global supply chain, commodity prices, and financial markets, including the impact of inflation, rising interest rates, and the conflict in Ukraine continue to impact oil supply and demand.

Net income in 2022 benefited from higher commodity prices and increased revenues attributable to a new merged concession agreement in Egypt.

The increase in realized prices was primarily driven by the effects of global inflation, the conflict in Ukraine on global commodity prices, and uncertainties around spare capacity and energy security globally.

Since year-end 2021, the Company has reduced its total outstanding debt and redeemable preferred interests by $2 billion and $712 million, respectively, through the deconsolidation of ALTM and the retirement of outstanding notes and debentures.

The Company had $245 million of cash on hand at December 31, 2022.

- The Company’s quarterly dividend was increased in the fourth quarter of 2021 from $0.0625 per share to $0.125 per share.

The dividend was further increased in the third quarter of 2022 to $0.25 per share, representing a return to pre-COVID-19 dividend levels.

The Company does not anticipate any significant changes to activity levels in its three-year capital investment program or capital return framework in the context of higher strip oil and gas prices, remaining committed to safe, steady, and efficient operations across all assets and returning free cash flow to shareholders through dividends and share repurchases.

During 2022, the Company averaged 4 drilling rigs in the U.S., averaging 2 rigs each in the Southern Midland Basin and Delaware Basin assets.

The Company’s core Midland Basin development program and newly acquired properties in the Texas Delaware Basin are expected to represent key growth areas for the U.S. assets.

- Egypt gross equivalent production decreased 1 percent and net production increased 26 percent from 2021, primarily a function of improved cost recovery under the new merged concession agreement ratified at the end of 2021.

The Company continues to increase drilling and workover activity as a result of the merged concession agreement.

Egypt production growth is building on improvements in new well connections and recompletion activity.

- During 2022, the Company focused on several environmental initiatives in Egypt and has delivered on its 2022 upstream flaring reduction goal by flaring at least 40 percent less gas than would otherwise be flared without these initiatives, with the Company now compressing this gas into sales lines.

Production was negatively impacted by considerable planned and unplanned downtime at Beryl and Forties during the third quarter of 2022, improving in the fourth quarter of 2022 following completion of these maintenance activities.

- During the second quarter of 2022, the Company announced flow test results from the Krabdagu exploration well on Block 58 offshore Suriname, which encountered approximately 32 meters of net pay in each of the Upper Campanian and Lower Campanian zones.

Since 2019, the Company and TotalEnergies have drilled or participated in five discovery wells in the block, the Maka Central-1, Sapakara West-1, Kwaskwasi-1, Keskesi East-1, and Krabdagu-1, all of which successfully tested for the presence of hydrocarbons.

Ongoing exploration and appraisal drilling is continuing to confirm additional resource and optimal development well locations.

- During the third quarter of 2022, the Company announced an oil discovery offshore Suriname at Baja-1 in Block 53.

Baja-1 was drilled to a depth of 5,290 meters and encountered 34 meters of net oil pay in a single interval within the Campanian.

Fluid and log analysis indicates light oil with a gas-oil ratio of 1,600 to 2,200 standard cubic feet per barrel.

Evaluation of open-hole well logs, cores, and reservoir fluids is ongoing.

The Company also received regulatory approval regarding an amendment to the Block 53 production-sharing contract which provides options to extend the exploration period of the contract.

The first option was executed and extended the license to year-end 2023, with the option to extend further, subject to certain other investment commitments.

APA is the operator and holds a 45 percent interest in Block 53.

- *BCP Business Combination* On February 22, 2022, ALTM closed a transaction to combine with privately owned BCP Raptor Holdco LP (BCP and, together with BCP Raptor Holdco GP, LLC, the Contributed Entities) in an all-stock transaction, pursuant to the Contribution Agreement entered into by and among ALTM, Altus Midstream LP, New BCP Raptor Holdco, LLC (the Contributor), and BCP (the BCP Contribution Agreement).

Upon closing the transaction, the combined entity was renamed Kinetik Holdings Inc. (Kinetik).

ALTM’s stockholders continued to hold their existing shares of ALTM common stock.

Apache Midstream LLC, a wholly owned subsidiary of APA, which owned approximately 79 percent of the issued and outstanding shares of ALTM common stock prior to the BCP Business Combination, owned approximately 20 percent of the issued and outstanding shares of Kinetik common stock after the transaction closed.

The Company deconsolidated ALTM upon closing the transaction and recognized a gain of approximately $609 million that reflects the difference of the Company’s share of ALTM’s deconsolidated balance sheet and the fair value of its 20 percent retained ownership in the combined entity.

Subsequent to the close of the transaction, in March 2022, the Company sold four million of its shares of Kinetik Class A Common Stock for $224 million, reducing the Company’s retained ownership percentage in Kinetik to approximately 13 percent.

*•Delaware Basin Divestitures & Acquisitions* In the third quarter of 2022, the Company closed on the acquisition of oil and gas assets surrounding core acreage in the Delaware Basin for approximately $615 million after post-closing adjustments.

The Company paid $591 million in connection with this acquisition during 2022, with final cash settlement anticipated to be completed during the first quarter of 2023.

Also during 2022, the Company completed a previously announced transaction to sell certain non-core mineral rights in the Delaware Basin, for total cash proceeds of $726 million.

| | | | | | | 2022 | | | | | | Increase (Decrease) | | | | | | 2021 | | | | | | Increase (Decrease) | | | | | | 2020 | | |

The Company’s worldwide crude oil production increased 6 Mb/d compared to 2021, primarily a function of improved cost recovery under the merged concession agreement in Egypt ratified at the end of 2021, offset by extended operational downtime in the North Sea and natural production decline across all assets.

The Company’s worldwide natural gas production increased 35 MMcf/d compared to 2021, primarily a result of increased net production in Egypt resulting from improved cost recovery under the merged concession agreement ratified at the end of 2021, offset by extended operational downtime in the North Sea and natural production decline across all assets.

On January 4, 2021, Apache Corporation announced plans to implement a holding company reorganization (the Holding Company Reorganization), which was thereafter completed on March 1, 2021.

The Company’s midstream business (Altus Midstream) is operated by Altus Midstream Company (Nasdaq: ALTM) through its subsidiary Altus Midstream LP (collectively, Altus).

Today, the world faces a dual challenge: To meet growing demand for energy and to do so in a cleaner, more sustainable way.

The global economy and the energy industry have been deeply impacted by the effects of the coronavirus disease 2019 (COVID-19) pandemic and related governmental actions.

Uncertainties in the commodity and financial markets since early 2020 continue to impact oil supply and demand.

Net income in 2021 benefited from significantly improved commodity prices that had collapsed in the prior year when the COVID-19 pandemic negatively affected economic activity and the oil markets.

In 2020, the Company recorded impairments totaling $4.5 billion in connection with fair value assessments stemming from the global crude oil price collapse.

The Company ended the year with a cash balance of $302 million, up $40 million from year-end 2020, after paying back nearly $1.4 billion of debt during 2021 in an effort to reduce near-term debt maturities and strengthening its balance sheet.

Following this progress and considering the ongoing constructive price environment, the Company initiated a capital return framework for our shareholders, as follows:

After halting all drilling and completion activity for most of 2020, in response to completion cost reductions, the Company reinstated two operated completion crews in the Permian Basin in late 2020 to begin completing its backlog of drilled but uncompleted well inventory.

In early 2021, the Company re-activated one drilling rig in the Permian Basin and one rig in the Austin Chalk.

A second rig was added in the Permian Basin in late June 2021.

For 2022, the Company will continue to budget its capital program at levels to fund activity necessary to offset inherent declines in production and proved oil and natural gas reserves.

- On October 11, 2021, the Company announced that it has ended routine flaring in its U.S. onshore operations, achieving one of its announced 2021 environmental, social and governance (ESG) goals three months ahead of schedule.

The Company also seeks continuous improvement on its safety performance and protocols, having established key safety indicators and metrics that are rigorously managed and that impact annual incentive compensation Company-wide.

- On October 21, 2021, ALTM announced that it will combine with privately owned BCP Raptor Holdco LP (BCP) in an all-stock transaction.

Upon closing of the transaction, APA will own approximately 20 percent of the issued and outstanding common stock of the combined entity.

The transaction is expected to close during the first quarter of 2022 following completion of customary closing conditions.

- Egypt gross equivalent production decreased 14 percent and net production decreased 6 percent from 2020, primarily a result of natural decline given reduced drilling activity in the past year.

The modernized production-sharing agreement did not impact 2021 production since it was ratified at the end of the year.

The Company anticipates increased drilling and workover activity in 2022 as a result of the ratification of the new modernized PSC.

During the year, production was significantly impacted by compressor downtime, extended platform turnaround work, and third-party pipeline outages.

- Following three successful exploration discoveries offshore Suriname on Block 58, in late 2020, the Company commenced drilling a fourth exploration well in the block at the Keskesi prospect.

In January 2021, the Company and its partner TotalEnergies (formerly Total S.A.) announced a discovery that confirmed oil in the eastern portion of the block.

The Company has subsequently transferred operatorship of Block 58 to TotalEnergies, with exploration and appraisal activities continuing to progress.

- In November 2021, the Company announced a successful flow test and pressure buildup at its Sapakara South appraisal well on Block 58, which continues to improve in outlook as additional information is gathered and processed.

Further, in February 2022 the Company and TotalEnergies announced an oil discovery at the Krabdagu-1 (KBD-1) exploration well.

KBD-1 is located approximately 18 kilometers southeast of the Sapakara South-1 well.

The well was designed to test multiple stacked targets in Maastrichtian and Campanian intervals and encountered approximately 90 meters (295 feet) of net oil pay.

- *Permian Basin Divestiture* In the second quarter of 2021, the Company completed the sale of certain non-core assets in the Central Basin Platform of the Permian Basin for total cash proceeds of $176 million and the assumption of asset retirement obligations of $44 million.

The Company also completed certain leasehold and property acquisitions, primarily in the Permian Basin, for total cash consideration of $4 million.

- *Suriname Joint Venture Agreement* In December 2019, the Company entered into a joint venture agreement with TotalEnergies to explore and develop Block 58 offshore Suriname.

Under the terms of the agreement, the Company and TotalEnergies each hold a 50 percent working interest in Block 58.

The Company operated the drilling of the first four wells and subsequently transferred operatorship of Block 58 to TotalEnergies.

In connection with the agreement, the Company received $100 million upon closing in the fourth quarter of 2019 and $79 million upon satisfying certain closing conditions in the first quarter of 2020 for reimbursement of 50 percent of all costs incurred on Block 58 as of December 31, 2019.

Key terms of the agreement provide for TotalEnergies to pay a proportionately larger share of appraisal and development costs, which would be recoverable through hydrocarbon participation.

- The Company predominantly sells its natural gas production within the U.S., including to U.S. LNG export facilities, although a portion is sold to markets in Mexico.

The Company’s worldwide crude oil production decreased 32 Mb/d compared to 2020, primarily a result of production decline across all countries driven by reduced drilling activity in the prior year, and extended operational downtime and platform turnaround work in the North Sea.

The Company’s worldwide natural gas production decreased 64 MMcf/d compared to 2020, primarily a result of production decline across all countries, impacts of winter storms in the U.S., and extended operational downtime and platform turnaround work in the North Sea.

On October 21, 2021, ALTM announced that it will combine with privately owned BCP in an all-stock transaction, and APA’s ownership in ALTM will be reduced from approximately 79 percent to approximately 20 percent.

The Company’s average crude oil [added: price] realizations increased [removed: 74] [added: 44] percent to [removed: $68.97] [added: $99.11] per barrel in [removed: 2021] [added: 2022] from [removed: $39.60] [added: $68.97] per barrel in [removed: 2020.][added: 2021.]

The Company’s average natural gas price realizations increased [removed: 118] [added: 25] percent to [removed: $3.99] [added: $4.98] per Mcf in [removed: 2021] [added: 2022] from [removed: $1.83] [added: $3.99] per Mcf in [removed: 2020.][added: 2021.]

The Company’s average NGL [added: price] realizations increased [removed: 141] [added: 21] percent to [removed: $28.48] [added: $34.51] per barrel in [removed: 2021] [added: 2022] from [removed: $11.84] [added: $28.48] per barrel in [removed: 2020.][added: 2021.]

Based on average daily production for [removed: 2021,] [added: 2022,] a $1.00 per barrel change in the weighted average realized oil price would have increased or decreased revenues for the year by approximately [removed: $66] [added: $69] million, a $0.10 per Mcf change in the weighted average realized [removed: price of] natural gas [added: price] would have increased or decreased revenues for the year by approximately [removed: $30] [added: $32] million, and a $1.00 per barrel change in the weighted average realized NGL price would have increased or decreased revenues for the year by approximately [removed: $25] [added: $23] million.

As of December 31, [removed: 2021,] [added: 2022,] the Company had open natural gas [removed: derivatives,] [added: derivatives] not designated as cash flow [removed: hedges,] [added: hedges] in a liability position with a fair value of [removed: approximately $10] [added: $45] million.

A 10 percent increase in [removed: basis differential of the hedges] [added: gas prices] would [removed: increase] [added: decrease] the liability by approximately [removed: $30] [added: $4] million, while a 10 percent decrease in [removed: basis differential of the hedges] [added: prices] would [removed: move] [added: increase] the [removed: derivatives to an asset position of] [added: liability by] approximately [removed: $21] [added: $4] million.

These fair value changes assume volatility based on prevailing market parameters as of December 31, [removed: 2021.][added: 2022.]

Refer to [Note 4—Derivative Instruments and Hedging [removed: Activities](#id69a2274c08240fd88f623fae590066c_181)] [added: Activities](#i6237445a6a004121a7d3f066ad8153fe_184)] in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report Form 10-K for notional volumes and terms with the Company’s derivative contracts.

At December 31, [removed: 2021, Apache] [added: 2022, the Company] had [removed: $6.3] [added: $4.9] billion, net, in outstanding notes and debentures, all of which was fixed-rate debt, with a weighted average interest rate of [removed: 5.07] [added: 5.32] percent.

The Company is also exposed to interest rate risk related to its interest-bearing cash and cash equivalents balances and amounts outstanding under [removed: the Apache and Altus Midstream LP] [added: its syndicated] credit facilities.

As of December 31, [removed: 2021,] [added: 2022,] the Company had approximately [removed: $302] [added: $245] million in cash and cash equivalents, approximately [removed: 57] [added: 60] percent of which was invested in money market funds and short-term investments with major financial institutions.

As of December 31, [removed: 2021,] [added: 2022,] there were [removed: $542 million and $657] [added: $566] million of borrowings outstanding under the [removed: Apache Corporation and Altus Midstream LP] [added: Company’s syndicated] revolving credit [removed: facilities, respectively.][added: facilities.]

The Company’s Egypt production is [removed: primarily] sold under U.S. dollar contracts, and the majority of costs incurred are denominated in U.S. dollars.

A foreign currency net gain or loss of $3 million would result from a 10 percent weakening or strengthening, respectively, in the British pound as of December 31, [removed: 2021.][added: 2022.]

The Company continually monitors its market risk exposure, as oil and gas supply and demand are impacted by uncertainties in the commodity and financial markets associated with the conflict in Ukraine, global inflation, and other current events.

These factors have only been heightened as the implications of the COVID-19 pandemic became more apparent.

The Company continually monitors its market risk exposure, including the impact and developments related to the COVID-19 pandemic, which introduced significant volatility in the financial markets beginning in early 2020.

The Company is subject to increased foreign currency risk associated with the effects of the U.K.’s withdrawal from the European Union.

The Company has periodically entered into foreign exchange contracts in order to minimize the impact of fluctuating exchange rates for the British pound on the Company’s operating expenses.

As of December 31, 2021, the Company had outstanding foreign exchange contracts with a total notional amount of £180 million that are used to reduce its exposure to fluctuating foreign exchange rates for the British pound.

A 10 percent strengthening of the British pound against the U.S. dollar would result in a foreign currency net gain of $20 million, while a 10 percent weakening of the British pound against the U.S. dollar would result in a loss of $14 million as of December 31, 2021.

The information set forth under “Legal Matters” and “Environmental Matters” in [Note 11—Commitments and [removed: Contingencies](#id69a2274c08240fd88f623fae590066c_202)] [added: Contingencies](#i6237445a6a004121a7d3f066ad8153fe_205)] in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K is incorporated herein by reference.

For the fiscal year ended December 31, [removed: 2021][added: 2022]

| Aggregate market value of the voting and non-voting common equity held by non-affiliates of registrant as of June 30, [removed: 2021] [added: 2022] | | | $ | [removed: 8,176,506,326] [added: 11,605,297,384] | |

| Number of shares of registrant’s common stock outstanding as of January 31, [removed: 2022] [added: 2023] | | | [removed: 346,776,379] [added: 310,953,174] | | |

Portions of the registrant’s definitive proxy statement relating to the registrant’s [removed: 2022] [added: 2023] annual meeting of stockholders are incorporated by reference in Part II and Part III of this Annual Report on Form 10-K.

| 1A. | | | [RISK [removed: FACTORS](#id69a2274c08240fd88f623fae590066c_22)] [added: FACTORS](#i6237445a6a004121a7d3f066ad8153fe_22)] | | | [removed: [19](#id69a2274c08240fd88f623fae590066c_22)] [added: [18](#i6237445a6a004121a7d3f066ad8153fe_22)] | | |

| 1B. | | | [UNRESOLVED STAFF [removed: COMMENTS](#id69a2274c08240fd88f623fae590066c_25)] [added: COMMENTS](#i6237445a6a004121a7d3f066ad8153fe_25)] | | | [removed: [33](#id69a2274c08240fd88f623fae590066c_25)] [added: [31](#i6237445a6a004121a7d3f066ad8153fe_25)] | | |

| 3. | | | [LEGAL [removed: PROCEEDINGS](#id69a2274c08240fd88f623fae590066c_28)] [added: PROCEEDINGS](#i6237445a6a004121a7d3f066ad8153fe_28)] | | | [removed: [33](#id69a2274c08240fd88f623fae590066c_28)] [added: [32](#i6237445a6a004121a7d3f066ad8153fe_28)] | | |

| 4. | | | [MINE SAFETY [removed: DISCLOSURES](#id69a2274c08240fd88f623fae590066c_31)] [added: DISCLOSURES](#i6237445a6a004121a7d3f066ad8153fe_31)] | | | [removed: [33](#id69a2274c08240fd88f623fae590066c_31)] [added: [32](#i6237445a6a004121a7d3f066ad8153fe_31)] | | |

| 5. | | | [MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY [removed: SECURITIES](#id69a2274c08240fd88f623fae590066c_37)] [added: SECURITIES](#i6237445a6a004121a7d3f066ad8153fe_37)] | | | [removed: [34](#id69a2274c08240fd88f623fae590066c_37)] [added: [33](#i6237445a6a004121a7d3f066ad8153fe_37)] | | |

| 6. | | | [SELECTED FINANCIAL [removed: DATA](#id69a2274c08240fd88f623fae590066c_40)] [added: DATA](#i6237445a6a004121a7d3f066ad8153fe_40)] | | | [removed: [35](#id69a2274c08240fd88f623fae590066c_40)] [added: [34](#i6237445a6a004121a7d3f066ad8153fe_40)] | | |

| 7. | | | [MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF [removed: OPERATIONS](#id69a2274c08240fd88f623fae590066c_43)] [added: OPERATIONS](#i6237445a6a004121a7d3f066ad8153fe_43)] | | | [removed: [36](#id69a2274c08240fd88f623fae590066c_43)] [added: [35](#i6237445a6a004121a7d3f066ad8153fe_43)] | | |

| 7A. | | | [QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET [removed: RISK](#id69a2274c08240fd88f623fae590066c_88)] [added: RISK](#i6237445a6a004121a7d3f066ad8153fe_88)] | | | [removed: [57](#id69a2274c08240fd88f623fae590066c_88)] [added: [58](#i6237445a6a004121a7d3f066ad8153fe_88)] | | |

| 8. | | | [FINANCIAL STATEMENTS AND SUPPLEMENTARY [removed: DATA](#id69a2274c08240fd88f623fae590066c_91)] [added: DATA](#i6237445a6a004121a7d3f066ad8153fe_91)] | | | [removed: [58](#id69a2274c08240fd88f623fae590066c_91)] [added: [60](#i6237445a6a004121a7d3f066ad8153fe_91)] | | |

| 9. | | | [CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL [removed: DISCLOSURE](#id69a2274c08240fd88f623fae590066c_94)] [added: DISCLOSURE](#i6237445a6a004121a7d3f066ad8153fe_94)] | | | [removed: [58](#id69a2274c08240fd88f623fae590066c_94)] [added: [60](#i6237445a6a004121a7d3f066ad8153fe_94)] | | |

| 9A. | | | [CONTROLS AND [removed: PROCEDURES](#id69a2274c08240fd88f623fae590066c_97)] [added: PROCEDURES](#i6237445a6a004121a7d3f066ad8153fe_97)] | | | [removed: [59](#id69a2274c08240fd88f623fae590066c_97)] [added: [60](#i6237445a6a004121a7d3f066ad8153fe_97)] | | |

| 9B. | | | [OTHER [removed: INFORMATION](#id69a2274c08240fd88f623fae590066c_100)] [added: INFORMATION](#i6237445a6a004121a7d3f066ad8153fe_100)] | | | [removed: [59](#id69a2274c08240fd88f623fae590066c_100)] [added: [60](#i6237445a6a004121a7d3f066ad8153fe_100)] | | |

| 9C. | | | [DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT [removed: INSPECTIONS](#id69a2274c08240fd88f623fae590066c_2109)] [added: INSPECTIONS](#i6237445a6a004121a7d3f066ad8153fe_103)] | | | [removed: [59](#id69a2274c08240fd88f623fae590066c_2109)] [added: [60](#i6237445a6a004121a7d3f066ad8153fe_103)] | | |

| 10. | | | [DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE [removed: GOVERNANCE](#id69a2274c08240fd88f623fae590066c_106)] [added: GOVERNANCE](#i6237445a6a004121a7d3f066ad8153fe_109)] | | | [removed: [60](#id69a2274c08240fd88f623fae590066c_106)] [added: [61](#i6237445a6a004121a7d3f066ad8153fe_109)] | | |

| 11. | | | [EXECUTIVE [removed: COMPENSATION](#id69a2274c08240fd88f623fae590066c_109)] [added: COMPENSATION](#i6237445a6a004121a7d3f066ad8153fe_112)] | | | [removed: [60](#id69a2274c08240fd88f623fae590066c_109)] [added: [61](#i6237445a6a004121a7d3f066ad8153fe_112)] | | |

| 12. | | | [SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER [removed: MATTERS](#id69a2274c08240fd88f623fae590066c_112)] [added: MATTERS](#i6237445a6a004121a7d3f066ad8153fe_115)] | | | [removed: [60](#id69a2274c08240fd88f623fae590066c_112)] [added: [61](#i6237445a6a004121a7d3f066ad8153fe_115)] | | |

| 13. | | | [CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR [removed: INDEPENDENCE](#id69a2274c08240fd88f623fae590066c_115)] [added: INDEPENDENCE](#i6237445a6a004121a7d3f066ad8153fe_118)] | | | [removed: [60](#id69a2274c08240fd88f623fae590066c_115)] [added: [61](#i6237445a6a004121a7d3f066ad8153fe_118)] | | |

| 14. | | | [PRINCIPAL ACCOUNTING FEES AND [removed: SERVICES](#id69a2274c08240fd88f623fae590066c_118)] [added: SERVICES](#i6237445a6a004121a7d3f066ad8153fe_121)] | | | [removed: [60](#id69a2274c08240fd88f623fae590066c_118)] [added: [61](#i6237445a6a004121a7d3f066ad8153fe_121)] | | |

| 15. | | | [EXHIBITS, FINANCIAL STATEMENT [removed: SCHEDULES](#id69a2274c08240fd88f623fae590066c_124)] [added: SCHEDULES](#i6237445a6a004121a7d3f066ad8153fe_127)] | | | [removed: [61](#id69a2274c08240fd88f623fae590066c_124)] [added: [62](#i6237445a6a004121a7d3f066ad8153fe_127)] | | |

| 16. | | | [FORM 10-K [removed: SUMMARY](#id69a2274c08240fd88f623fae590066c_130)] [added: SUMMARY](#i6237445a6a004121a7d3f066ad8153fe_133)] | | | [removed: [64](#id69a2274c08240fd88f623fae590066c_130)] [added: [66](#i6237445a6a004121a7d3f066ad8153fe_133)] | | |

All statements other than statements of historical facts included or incorporated by reference in this Annual Report on Form 10-K, including, without limitation, statements regarding the Company’s future financial position, business strategy, budgets, projected revenues, projected costs, and plans and objectives of management for future [removed: operations,] [added: operations and capital returns framework,] are forward-looking statements.

Such forward-looking statements are based on the Company’s examination of historical operating trends, the information that was used to prepare its estimate of proved reserves as of December 31, [removed: 2021,] [added: 2022,] and other data in the Company’s possession or available from third parties.

In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “will,” “could,” “expect,” “intend,” “project,” “estimate,” “anticipate,” “plan,” “believe,” “continue,” “seek,” “guidance,” [added: “goal,”] “might,” “outlook,” “possibly,” “potential,” “prospect,” “should,” “would,” or similar terminology, but the absence of these words does not mean that a statement is not forward looking.

- the market prices of oil, natural gas, natural gas liquids (NGLs), and other products or [removed: services;][added: services, including the prices received for natural gas purchased from third parties to sell and deliver to a U.S. LNG export facility;]

APA Corporation (APA or the Company), is an independent energy company that [removed: explores] [added: owns consolidated subsidiaries that explore] for, [removed: develops,] [added: develop,] and [removed: produces] [added: produce] natural gas, crude oil, and NGLs.

APA also has active exploration and appraisal operations ongoing in Suriname, as well as interests in [added: the Dominican Republic and] other international locations that may, over time, result in reportable discoveries and development opportunities.

[removed: The] [added: Prior to the BCP Business Combination defined below, the] Company’s midstream business [removed: (Altus Midstream) is] [added: was] operated by Altus Midstream Company [removed: (Nasdaq: ALTM)] [added: (ALTM)] through its subsidiary Altus Midstream LP (collectively, Altus).

Altus [removed: owns, develops,] [added: owned, developed,] and [removed: operates] [added: operated] a midstream energy asset network in the Permian Basin of West Texas.

On March 1, 2021, Apache Corporation [removed: completed] [added: consummated] a holding company reorganization (the Holding Company Reorganization), pursuant to [removed: which,] [added: which] Apache Corporation became a direct, wholly owned subsidiary of APA Corporation, and all of Apache Corporation’s outstanding shares [removed: were] automatically converted into equivalent corresponding shares of APA.

APA maintains a diversified asset portfolio, including conventional and unconventional, onshore and offshore, [added: oil and natural gas] exploration and production interests.

In the U.S., [removed: APA] operations are primarily focused in the Permian Basin of West Texas and Eastern New Mexico, with additional operations located in the Eagle Ford shale and Austin Chalk areas of Southeast Texas, offshore in the Gulf of Mexico, and along the Gulf Coast.

[removed: Specifically,] [added: In late 2021,] the Company refreshed the economic foundation for its business in Egypt with the [removed: announcement of the] ratification of a [removed: modernized production-sharing contract (PSC)] [added: new merged concession agreement (MCA)] with the Egyptian Ministry of Petroleum and the Egyptian General Petroleum Corporation (EGPC).

The new [removed: PSC] [added: MCA] consolidates the majority of the Company’s gross acreage and production in Egypt [removed: into a single] [added: under one] concession [added: agreement] and refreshes existing development and exploration lease terms.

The [removed: modernized PSC] [added: MCA] incentivizes increased investment and production growth and places Egypt at the top of many attractive investment opportunities in APA’s global portfolio.

[removed: Reducing APA’s interest in Altus to a minority position will have] [added: The deconsolidation provides] a number of benefits to APA shareholders, including simplification of [removed: its] [added: the Company’s] financial reporting and enhanced comparability with its upstream-only peers, while maintaining a noncontrolling interest in future growth [removed: opportunities.][added: opportunities of Kinetik.]

Despite these uncertainties, the Company remains committed to its longer-term objectives: (1) to maintain a balanced asset portfolio, including advancement of ongoing exploration and appraisal activities offshore Suriname; (2) to invest for long-term returns over production growth; and (3) to budget conservatively to generate cash flow in excess of its upstream exploration, appraisal, and development capital program that can be directed to debt reduction, share repurchases, and [added: other] return of capital to its [removed: stakeholders.][added: shareholders.]

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b).

| 1. | | | [BUSINESS](#i6237445a6a004121a7d3f066ad8153fe_19) | | | [1](#i6237445a6a004121a7d3f066ad8153fe_19) | | |

| 2. | | | [PROPERTIES](#i6237445a6a004121a7d3f066ad8153fe_19) | | | [1](#i6237445a6a004121a7d3f066ad8153fe_19) | | |

- changes in local, regional, national, and international economic conditions, including as a result of any epidemics or pandemics, such as the coronavirus disease (COVID-19) pandemic and any related variants;

- economic and competitive conditions, including market and macro-economic disruptions resulting from the Russian war in Ukraine;

- the impact of changes in tax legislation;

iv

As a holding company, APA Corporation’s primary assets are its ownership interests in its subsidiaries.

On February 22, 2022, ALTM closed on a transaction to combine with privately owned BCP Raptor Holdco LP (BCP) in an all-stock transaction.

Upon closing the transaction, the combined entity was renamed Kinetik Holdings Inc. (Kinetik), and APA’s ownership in ALTM was reduced from approximately 79 percent to approximately 20 percent.

Upon closing the transaction, the Company deconsolidated ALTM.

Early in 2020, impacts of the coronavirus disease 2019 (COVID-19) pandemic and related governmental actions began to exert significant downward pressure on crude oil and natural gas prices.

Since that time, commodity prices worldwide have largely rebounded; however, uncertainties in the global supply chain, commodity prices, and financial markets, including the impact of inflation, rising interest rates, and the conflict in Ukraine continue to impact oil supply and demand.

APA also has active exploration and appraisal operations ongoing in Suriname, as well as interests in the Dominican Republic and other international locations that may, over time, result in reportable discoveries and development opportunities.

| United States | | | | | | 77.4 | | | | | | 53 | | % | | | | $ | 4,141 | | | | | 607 | | | | | | 68 | | % | | | | 74 | | | | | | 74 | | |

| Egypt(1) | | | | | | 52.8 | | | | | | 37 | | % | | | | 3,521 | | | | | | 184 | | | | | | 21 | | % | | | | 97 | | | | | | 82 | | |

| Total | | | | | | 144.6 | | | | | | 100 | | % | | | | $ | 9,220 | | | | | 890 | | | | | | 100 | | % | | | | 178 | | | | | | 158 | | |

During 2022, the Company completed 22 gross development wells with a 100 percent success rate.

The Company also acquired oil and gas assets with over 6,000 gross acres surrounding core acreage in the Delaware Basin during the year.

The Company is committed to maintaining a safe, steady, and efficient level of activity as part of its three-year capital investment program.

In addition, to satisfy a delivery commitment beginning in 2023, the Company will purchase third party natural gas to sell and deliver to a U.S. LNG export facility.

At year-end 2022, the Company held 5.3 million gross acres in six separate concessions.

During 2022, the Company focused on several environmental initiatives in Egypt and has delivered on its 2022 upstream flaring reduction goal by flaring at least 40 percent less gas than would otherwise be flared without these initiatives, with the Company now compressing this gas into sales lines.

For 2023, the Company will continue to focus on driving efficiencies and managing costs after increasing activity under the MCA.

Production was negatively impacted by considerable planned and unplanned downtime at Beryl and Forties during 2022, improving in the fourth quarter of 2022 following completion of these maintenance activities.

Ongoing exploration and appraisal drilling is continuing to confirm additional resources and optimal development well locations.

Key terms of the agreement provide for TotalEnergies to pay 50 percent of all exploration activities and a proportionately larger share of appraisal and development costs, which would be recoverable through hydrocarbon participation.

For the first $10 billion of gross capital expenditures, TotalEnergies pays 87.5 percent, and the Company pays 12.5 percent; for the next $5 billion in gross expenditures, TotalEnergies pays 75 percent and the Company pays 25 percent; and for all gross expenditures above $15 billion, TotalEnergies pays 62.5 percent and the Company pays 37.5 percent.

The Company will also receive various other forms of consideration, including a $75 million cash payment upon achieving first oil production, and future contingent royalty payments from successful joint development projects.

The Company is also the operator of Block 53 offshore Suriname and holds a 45 percent working interest in the block.

The Company announced an oil discovery at the Baja well in Block 53 during the third quarter of 2022.

Evaluation of the discovery is ongoing.

| 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Egypt | | | | | | 15.0 | | | | | | 14.5 | | | | | | 29.5 | | | | | | 64.4 | | | | | | — | | | | | | 64.4 | | | | | | 79.4 | | | | | | 14.5 | | | | | | 93.9 | | |

| North Sea | | | | | | 1.0 | | | | | | — | | | | | | 1.0 | | | | | | 1.0 | | | | | | — | | | | | | 1.0 | | | | | | 2.0 | | | | | | — | | | | | | 2.0 | | |

| Other International | | | | | | — | | | | | | 2.1 | | | | | | 2.1 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2.1 | | | | | | 2.1 | | |

| Total | | | | | | 16.0 | | | | | | 16.6 | | | | | | 32.6 | | | | | | 106.1 | | | | | | — | | | | | | 106.1 | | | | | | 122.1 | | | | | | 16.6 | | | | | | 138.7 | | |

| United States | | | | | | 8,751 | | | | | | 5,292 | | | | | | 881 | | | | | | 624 | | | | | | 9,632 | | | | | | 5,916 | | |

| Egypt | | | | | | 1,076 | | | | | | 1,037 | | | | | | 116 | | | | | | 113 | | | | | | 1,192 | | | | | | 1,150 | | |

| 1. | | | [BUSINESS](#id69a2274c08240fd88f623fae590066c_19) | | | [1](#id69a2274c08240fd88f623fae590066c_19) | | |

| 2. | | | [PROPERTIES](#id69a2274c08240fd88f623fae590066c_19) | | | [1](#id69a2274c08240fd88f623fae590066c_19) | | |

- the scope, duration, and reoccurrence of any epidemics or pandemics (including, specifically, the coronavirus disease 2019 (COVID-19) pandemic and any related variants) and the actions taken by third parties, including, but not limited to, governmental authorities, customers, contractors, and suppliers, in response to such epidemics or pandemics;

- the mandate, availability, and effectiveness of vaccine programs and therapeutics related to the treatment of COVID-19;

- economic and competitive conditions;

ii

iii

OUR PURPOSE

APA believes energy underpins global progress, and the Company wants to be a part of the conversation and solution as society works to meet growing global demand for reliable and affordable energy.

Today, the world faces a dual challenge: To meet growing demand for energy and to do so in a cleaner, more sustainable way.

APA believes society can accomplish both, and strives to meet those challenges while creating value for all its stakeholders.

OUR VISION

To be the premier exploration and production company, contributing to global progress by helping meet the world’s energy needs.

OUR CORE VALUES

- Safety is not negotiable and will not be compromised.

- Conduct business with honesty and integrity.

- We derive benefit from the Earth and take our environmental responsibility seriously.

- Treat stakeholders with respect and dignity.

- Invest in our greatest asset: our people.

- Expect top performance and innovation.

- Seek relentless improvement in all facets.

- Drive to succeed with a sense of urgency.

- Foster a contrarian spirit.

During 2021, the Company made significant progress on key aspects of its portfolio.

In October 2021, Altus Midstream Company (ALTM) announced that it will combine with privately owned BCP Raptor Holdco LP (BCP) in an all-stock transaction, and APA’s ownership in ALTM will be reduced from approximately 79 percent to approximately 20 percent.

The global economy and the energy industry have been deeply impacted by the effects of the coronavirus disease 2019 (COVID-19) pandemic and related governmental actions.

Uncertainty in the commodity and financial markets since early 2020 continue to impact oil supply and demand.

| United States | | | | | | 83.7 | | | | | | 59 | | % | | | | $ | 3,277 | | | | | 617 | | | | | | 68 | | % | | | | 102 | | | | | | 102 | | |

| Egypt(1) | | | | | | 41.9 | | | | | | 30 | | % | | | | 2,085 | | | | | | 197 | | | | | | 21 | | % | | | | 54 | | | | | | 39 | | |

| Total | | | | | | 141.6 | | | | | | 100 | | % | | | | $ | 6,498 | | | | | 913 | | | | | | 100 | | % | | | | 166 | | | | | | 145 | | |

During 2021, the Company focused on completing wells drilled from previous years and completed 27 gross development wells.

Legacy onshore properties are located primarily in the Eagle Ford shale and Austin Chalk areas of Southeast Texas.

The Company participated in drilling 14 gross non-operated development wells in these areas during 2021.

The Company also initiated a targeted drilling program on its Austin Chalk acreage where it will continue to evaluate and high-grade inventory opportunities.

- During the fourth quarter of 2021, the Company announced that it has ended routine flaring in its U.S. onshore operations, achieving one of its announced 2021 environmental, social and governance (ESG) goals, three months ahead of schedule.

With the improvement in commodity prices, the Company is returning to a modest level of activity in the U.S. After halting all drilling and completion activity for most of 2020, in early 2021 the Company re-activated one rig in the Permian Basin and one rig in the Austin Chalk.

A second rig was added in the Permian Basin in late June 2021.

The Company predominantly sells its natural gas production within the U.S., including to U.S. LNG export facilities, although a portion may be sold to markets in Mexico.

For 2022, the Company plans to increase activity to a 15 rig drilling program for the year and increase well completions by approximately three times compared to 2021 with a goal of growing gross oil production 13 to 15 percent.

The North Sea assets play a strategic role in APA’s portfolio by providing competitive investment opportunities and potential reserve upside with high-impact exploration potential, near existing infrastructure.

APA’s common stock, par value $0.625 per share, is traded on the Nasdaq Global Select Market (Nasdaq) under the symbol “APA.” The closing price of APA’s common stock, as reported by the Nasdaq for January 31, [removed: 2022,] [added: 2023,] was [removed: $33.21] [added: $44.33] per share.

As of January 31, [removed: 2022,] [added: 2023,] there were [removed: 346,776,379] [added: 310,953,174] shares of APA’s common stock outstanding held by approximately [removed: 3,300] [added: 3,100] stockholders of record and [removed: 152,000] [added: 208,000] beneficial owners.

The Company has paid cash dividends on its common stock for [removed: 57] [added: 58] consecutive years through December 31, [removed: 2021.][added: 2022.]

In the [removed: third] [added: fourth] quarter of [removed: 2021,] [added: 2021] APA’s Board of Directors approved an increase in the Company’s quarterly dividend per share from [removed: $0.025 per share to] $0.0625 per [removed: share, effective for all dividends payable after September 14, 2021, and further increased the quarterly dividend in the fourth quarter of 2021] [added: share] to $0.125 per share [removed: to be] paid on February 22, [removed: 2022.][added: 2022, and during the third quarter of 2022, the Company’s Board of Directors approved a further increase to its quarterly dividend to $0.25 per share.]

Information concerning securities authorized for issuance under equity compensation plans is set forth under the caption “Equity Compensation Plan Information” in the proxy statement relating to the Company’s [removed: 2022] [added: 2023] annual meeting of stockholders, which is incorporated herein by reference.

The table below sets forth information with respect to shares of common stock repurchased by APA during [removed: 2021.][added: 2022.]

(1)During the fourth quarter of [removed: 2018,] [added: 2021,] the [removed: Company’s] [added: Company's] Board of Directors authorized the purchase of [removed: up to] 40 million shares of the [removed: Company’s] [added: Company's] common stock.

During [removed: the fourth quarter] [added: September] of [removed: 2021,] [added: 2022,] the [removed: Company’s] [added: Company's] Board of Directors authorized the purchase of an additional 40 million shares of the [removed: Company’s] [added: Company's] common stock.

[removed: In both cases, shares] [added: Shares] may be purchased either in the open market or through privately [removed: held] negotiated transactions.

The graph compares the yearly percentage change in the cumulative total stockholder return on the Company’s common stock with the cumulative total return of the Standard & Poor’s 500 Index (S&P 500 Index) and of the Dow Jones U.S. Exploration & Production Index (formerly Dow Jones Secondary Oil Stock Index) from December 31, [removed: 2016,] [added: 2017,] through December 31, [removed: 2021.][added: 2022.]

[removed: ][added: ]

* $100 invested on [removed: 12/31/16] [added: 12/31/17] in stock or index, including reinvestment of dividends.

| | | | | | | [removed: 2016] [added: 2017] | | | | | | [removed: 2017] [added: 2018] | | | | | | [removed: 2018] [added: 2019] | | | | | | [removed: 2019] [added: 2020] | | | | | | [removed: 2020] [added: 2021] | | | | | | [removed: 2021] [added: 2022] | | |

| Dow Jones U.S. Exploration & Production Index | | | | | | 100.00 | | | | | | [removed: 101.30] [added: 82.23] | | | | | | [removed: 83.30] [added: 91.60] | | | | | | [removed: 92.79] [added: 60.78] | | | | | | [removed: 61.57] [added: 103.88] | | | | | | [removed: 105.24] [added: 165.77] | | |

| January 1 to January 31, 2022 | | | | | | 600,000 | | | | | | $ | 26.96 | | | | | 600,000 | | | | | | 48,195,790 | | |

| February 1 to February 28, 2022 | | | | | | 1,000,000 | | | | | | 31.71 | | | | | | 1,000,000 | | | | | | 47,195,790 | | |

| March 1 to March 31, 2022 | | | | | | 5,629,450 | | | | | | 37.83 | | | | | | 5,629,450 | | | | | | 41,566,340 | | |

| April 1 to April 30, 2022 | | | | | | 1,877,089 | | | | | | 41.97 | | | | | | 1,877,089 | | | | | | 39,689,251 | | |

| May 1 to May 31, 2022 | | | | | | 1,920,689 | | | | | | 41.50 | | | | | | 1,920,689 | | | | | | 37,768,562 | | |

| June 1 to June 30, 2022 | | | | | | 3,189,921 | | | | | | 41.44 | | | | | | 3,189,921 | | | | | | 34,578,641 | | |

| July 1 to July 31, 2022 | | | | | | 6,863,858 | | | | | | 33.88 | | | | | | 6,863,858 | | | | | | 27,714,783 | | |

| August 1 to August 31, 2022 | | | | | | 2,958,437 | | | | | | 33.81 | | | | | | 2,958,437 | | | | | | 24,756,346 | | |

| September 1 to September 30, 2022 | | | | | | — | | | | | | — | | | | | | — | | | | | | 64,756,346 | | |

| October 1 to October 31, 2022 | | | | | | 2,063,203 | | | | | | 40.40 | | | | | | 2,063,203 | | | | | | 62,693,143 | | |

| November 1 to November 30, 2022 | | | | | | 445,747 | | | | | | 44.88 | | | | | | 445,747 | | | | | | 62,247,396 | | |

| December 1 to December 31, 2022 | | | | | | 9,616,599 | | | | | | 45.25 | | | | | | 9,616,599 | | | | | | 52,630,797 | | |

| Total | | | | | | 36,164,993 | | | | | | $ | 39.34 | | | | | | | | | | | | | |

The Company is not obligated to acquire any specific number of shares.

| APA Corporation | | | | | | $ | 100.00 | | | | | $ | 63.62 | | | | | $ | 64.29 | | | | | $ | 36.20 | | | | | $ | 69.05 | | | | | $ | 121.88 | |

| S&P 500 Index | | | | | | 100.00 | | | | | | 95.62 | | | | | | 125.72 | | | | | | 148.85 | | | | | | 191.58 | | | | | | 156.88 | | |

| January 1 to January 31, 2021 | | | | | | — | | | | | | $ | — | | | | | — | | | | | | 40,000,019 | | |

| February 1 to February 28, 2021 | | | | | | — | | | | | | — | | | | | | — | | | | | | 40,000,019 | | |

| March 1 to March 31, 2021 | | | | | | — | | | | | | — | | | | | | — | | | | | | 40,000,019 | | |

| April 1 to April 30, 2021 | | | | | | — | | | | | | — | | | | | | — | | | | | | 40,000,019 | | |

| May 1 to May 31, 2021 | | | | | | — | | | | | | — | | | | | | — | | | | | | 40,000,019 | | |

| June 1 to June 30, 2021 | | | | | | — | | | | | | — | | | | | | — | | | | | | 40,000,019 | | |

| July 1 to July 31, 2021 | | | | | | — | | | | | | — | | | | | | — | | | | | | 40,000,019 | | |

| August 1 to August 31, 2021 | | | | | | — | | | | | | — | | | | | | — | | | | | | 40,000,019 | | |

| September 1 to September 30, 2021 | | | | | | — | | | | | | — | | | | | | — | | | | | | 40,000,019 | | |

| October 1 to October 31, 2021 | | | | | | 12,849,856 | | | | | | 26.48 | | | | | | 12,849,856 | | | | | | 67,150,163 | | |

| November 1 to November 30, 2021 | | | | | | 11,153,840 | | | | | | 28.28 | | | | | | 11,153,840 | | | | | | 55,996,323 | | |

| December 1 to December 31, 2021 | | | | | | 7,200,533 | | | | | | 26.58 | | | | | | 7,200,533 | | | | | | 48,795,790 | | |

| Total | | | | | | 31,204,229 | | | | | | $ | 27.14 | | | | | | | | | | | | | |

| APA Corporation | | | | | | $ | 100.00 | | | | | $ | 67.87 | | | | | $ | 43.18 | | | | | $ | 43.63 | | | | | $ | 24.56 | | | | | $ | 46.86 | |

| S&P 500 Index | | | | | | 100.00 | | | | | | 121.83 | | | | | | 116.49 | | | | | | 153.17 | | | | | | 181.35 | | | | | | 233.41 | | |

The financial statements for the fiscal years ended December 31, [added: 2022,] 2021, [removed: 2020,] and [removed: 2019,] [added: 2020,] included in this Annual Report on Form 10-K, have been audited by Ernst & Young LLP, independent registered public accounting firm, as stated in their audit report appearing herein.

Riney, the Company’s Executive Vice President and Chief Financial Officer, in his capacity as principal financial officer, evaluated the effectiveness of the Company’s disclosure controls and procedures as of December 31, [removed: 2021,] [added: 2022,] the end of the period covered by this Annual Report on Form 10-K.

The independent auditors attestation report called for by Item 308(b) of Regulation S-K is incorporated herein by reference to the “Report of Independent Registered Public Accounting Firm,” included on Page [removed: F-3] [added: F-2] through F-5 in Part IV, Item 15 of this Annual Report on Form 10-K.

There was no change in our internal controls over financial reporting during the quarter ending December 31, [removed: 2021,] [added: 2022,] that has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.

The information set forth under the captions “Nominees for Election as Directors,” “Information [removed: About] [added: about] Our Executive Officers,” [removed: and] “Securities Ownership and Principal [removed: Holders”] [added: Holders,” “Additional Information—Future Shareholder Proposals and Director Nominations,” and “Corporate Governance—Standing Committees and Meetings of the Board”] in the proxy statement relating to the Company’s [removed: 2022] [added: 2023] annual meeting of shareholders (the Proxy Statement) is incorporated herein by reference.

The information set forth under the captions “Compensation Discussion and Analysis,” “Summary Compensation Table,” “Grants of Plan Based Awards Table,” “Outstanding Equity Awards at Fiscal Year-End Table,” “Option Exercises and Stock Vested Table,” “Non-Qualified Deferred Compensation Table,” “Potential Payments [removed: Upon] [added: upon] Termination or Change in [removed: Control” and] [added: Control,”] “Director Compensation [removed: Table”] [added: Table,” “CEO Pay Ratio,” “Compensation Committee Interlocks and Insider Participation,” and “Compensation Committee Report”] in the Proxy Statement is incorporated herein by reference.

| [Report of management on internal control over financial [removed: reporting](#id69a2274c08240fd88f623fae590066c_139)] [added: reporting](#i6237445a6a004121a7d3f066ad8153fe_142)] | | | [removed: F-[1](#id69a2274c08240fd88f623fae590066c_139)] [added: F-[1](#i6237445a6a004121a7d3f066ad8153fe_142)] | | |

| [Report of independent registered public accounting firm (PCAOB ID: [removed: 42)](#id69a2274c08240fd88f623fae590066c_142)] [added: 42)](#i6237445a6a004121a7d3f066ad8153fe_145)] | | | [removed: F-[2](#id69a2274c08240fd88f623fae590066c_142)] [added: F-[2](#i6237445a6a004121a7d3f066ad8153fe_145)] | | |

| [Report of independent registered public accounting firm (PCAOB [removed: ID:](#id69a2274c08240fd88f623fae590066c_145) 42[)](#id69a2274c08240fd88f623fae590066c_145)] [added: ID:](#i6237445a6a004121a7d3f066ad8153fe_148) 42[)](#i6237445a6a004121a7d3f066ad8153fe_148)] | | | [removed: F-[3](#id69a2274c08240fd88f623fae590066c_145)] [added: F-[3](#i6237445a6a004121a7d3f066ad8153fe_148)] | | |

| [Statement of consolidated operations for each of the three years in the period ended December 31, [removed: 2021](#id69a2274c08240fd88f623fae590066c_151)] [added: 2022](#i6237445a6a004121a7d3f066ad8153fe_154)] | | | [removed: F-[6](#id69a2274c08240fd88f623fae590066c_151)] [added: F-[6](#i6237445a6a004121a7d3f066ad8153fe_154)] | | |

| [Statement of consolidated comprehensive income (loss) for each of the three years in the period ended December 31, [removed: 2021](#id69a2274c08240fd88f623fae590066c_154)] [added: 2022](#i6237445a6a004121a7d3f066ad8153fe_157)] | | | [removed: F-[7](#id69a2274c08240fd88f623fae590066c_154)] [added: F-[7](#i6237445a6a004121a7d3f066ad8153fe_157)] | | |

| [Statement of consolidated cash flows for each of the three years in the period ended December 31, [removed: 2021](#id69a2274c08240fd88f623fae590066c_157)] [added: 2022](#i6237445a6a004121a7d3f066ad8153fe_160)] | | | [removed: F-[8](#id69a2274c08240fd88f623fae590066c_157)] [added: F-[8](#i6237445a6a004121a7d3f066ad8153fe_160)] | | |

| [Consolidated balance sheet as of December 31, [removed: 2021] [added: 2022] and [removed: 2020](#id69a2274c08240fd88f623fae590066c_160)] [added: 2021](#i6237445a6a004121a7d3f066ad8153fe_163)] | | | [removed: F-[9](#id69a2274c08240fd88f623fae590066c_160)] [added: F-[9](#i6237445a6a004121a7d3f066ad8153fe_163)] | | |

| [Statement of consolidated changes in equity (deficit) and noncontrolling interest for each of the three years in the period ended December 31, [removed: 2021](#id69a2274c08240fd88f623fae590066c_163)] [added: 2022](#i6237445a6a004121a7d3f066ad8153fe_166)] | | | [removed: F-[10](#id69a2274c08240fd88f623fae590066c_163)] [added: F-[10](#i6237445a6a004121a7d3f066ad8153fe_166)] | | |

| [Notes to consolidated financial [removed: statements](#id69a2274c08240fd88f623fae590066c_166)] [added: statements](#i6237445a6a004121a7d3f066ad8153fe_169)] | | | [removed: F-[11](#id69a2274c08240fd88f623fae590066c_166)] [added: F-[11](#i6237445a6a004121a7d3f066ad8153fe_169)] | | |

| 3.2 | | | – | | | [Amended and Restated Bylaws of Registrant, [removed: dated September 14, 2021 (incorporated] [added: dated](https://www.sec.gov/Archives/edgar/data/1841666/000119312523028378/d462086dex31.htm) [February 2, 2023](https://www.sec.gov/Archives/edgar/data/1841666/000119312523028378/d462086dex31.htm) [(incorporated] by reference to Exhibit 3.1 to Registrant’s Current Report on Form 8-K [removed: filed September 20, 2021, SEC] [added: filed](https://www.sec.gov/Archives/edgar/data/1841666/000119312523028378/d462086dex31.htm) [February 8, 2023,](https://www.sec.gov/Archives/edgar/data/1841666/000119312523028378/d462086dex31.htm) [SEC] File No. [removed: 001-40144).](https://www.sec.gov/Archives/edgar/data/0001841666/000119312521276990/d215523dex31.htm)] [added: 001-40144).](https://www.sec.gov/Archives/edgar/data/1841666/000119312523028378/d462086dex31.htm)] | | |

| [removed: 10.1] [added: †10.35] | | | – | | | [removed: [Assignment and Assumption] [added: [Amendment of Performance Share Grant] Agreement, dated [removed: as of] March 1, [removed: 2021, by and between Registrant and Apache Corporation] [added: 2021] (incorporated by reference to Exhibit [removed: 10.1] [added: 10.8] to Registrant’s Current Report on Form 8-K12B filed March 1, 2021, SEC File No. [removed: 001-40144).](https://www.sec.gov/Archives/edgar/data/0001841666/000119312521063695/d127090dex101.htm)] [added: 001-40144).](https://www.sec.gov/Archives/edgar/data/1841666/000119312521063695/d127090dex108.htm)] | | |

| [removed: †10.2] [added: †10.3] | | | – | | | [APA Corporation Income Continuance Plan, as amended and restated effective as of March 1, 2021 (incorporated by reference to Exhibit 10.2 to Registrant’s Current Report on Form 8-K12B filed March 1, 2021, SEC File No. 001-40144).](https://www.sec.gov/Archives/edgar/data/0001841666/000119312521063695/d127090dex102.htm) | | |

| [removed: †10.3] [added: †10.4] | | | – | | | [APA Corporation Executive Termination Policy, as amended and restated effective as of March 1, 2021 (incorporated by reference to Exhibit 10.3 to Registrant’s Current Report on Form 8-K12B filed March 1, 2021, SEC File No. 001-40144).](https://www.sec.gov/Archives/edgar/data/0001841666/000119312521063695/d127090dex103.htm) | | |

| [removed: †10.4] [added: †10.5] | | | – | | | [APA Corporation 2016 Omnibus Compensation Plan, dated February 3, 2016, effective May 12, 2016 (incorporated by reference to Exhibit 10.1 to Apache Corporation’s Current Report on Form 8-K filed May 16, 2016, SEC File No. 001-4300).](https://www.sec.gov/Archives/edgar/data/6769/000119312516591733/d169299dex101.htm) | | |

| [removed: †10.5] [added: †10.6] | | | – | | | [First Amendment to the Registrant’s 2016 Omnibus Compensation Plan, dated July 29, 2019 (incorporated by reference to Exhibit 10.13 to Apache Corporation’s Annual Report on Form 10-K for year ended December 31, 2019, SEC File No. 001-4300).](https://www.sec.gov/Archives/edgar/data/0000006769/000173303720000004/apaexhibit1013201910-k.htm) | | |

| [removed: †10.6] [added: †10.7] | | | – | | | [Second Amendment to the Registrant’s 2016 Omnibus Compensation Plan, dated March 1, 2021 (incorporated by reference to Exhibit 10.6 to the Registrant’s Current Report on Form 8-K12B filed on March 1, 2021, SEC File No. 001-40144).](https://www.sec.gov/Archives/edgar/data/0001841666/000119312521063695/d127090dex106.htm) | | |

| [removed: †10.7] [added: †10.8] | | | – | | | [APA Corporation 2011 Omnibus Equity Compensation Plan, as amended and restated May 12, 2016 (incorporated by reference to Exhibit 10.1 to Apache Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, SEC File No. 001-4300).](https://www.sec.gov/Archives/edgar/data/6769/000167337916000013/apaq22016ex101.htm) | | |

| [removed: †10.8] [added: †10.9] | | | – | | | [First Amendment to the Registrant’s 2011 Omnibus Equity Compensation Plan, dated July 29, 2019 (incorporated by reference to Exhibit 10.15 to Apache Corporation’s Annual Report on Form 10-K for year ended December 31, 2019, SEC File No. 001-4300).](https://www.sec.gov/Archives/edgar/data/6769/000173303720000004/apaexhibit1015201910-k.htm) | | |

| [removed: †10.9] [added: †10.10] | | | – | | | [Second Amendment to the Registrant’s 2011 Omnibus Equity Compensation Plan, dated March 1, 2021 (incorporated by reference to Exhibit 10.5 to Registrant’s Current Report on Form 8-K12B filed March 1, 2021, SEC File No. 001-40144).](https://www.sec.gov/Archives/edgar/data/0001841666/000119312521063695/d127090dex105.htm) | | |

| [removed: †10.10] [added: †10.11] | | | – | | | [APA Corporation 2007 Omnibus Equity Compensation Plan, as amended and restated May 4, 2011 (incorporated by reference to Exhibit 10.1 to Apache Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, SEC File No. 001-4300).](https://www.sec.gov/Archives/edgar/data/6769/000095012311047361/h80300exv10w1.htm) | | |

| [removed: †10.11] [added: †10.12] | | | – | | | [First Amendment to the Registrant’s 2007 Omnibus Equity Compensation Plan, dated March 1, 2021 (incorporated by reference to Exhibit 10.4 to Registrant’s Current Report on Form 8-K12B filed March 1, 2021, SEC File No. 001-40144).](https://www.sec.gov/Archives/edgar/data/0001841666/000119312521063695/d127090dex104.htm) | | |

| [removed: †10.12] [added: †10.13] | | | – | | | [APA Corporation Deferred Delivery Plan, as amended and restated May 12, 2016 (incorporated by reference to Exhibit 10.3 to Apache Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, SEC File No. 001-4300).](https://www.sec.gov/Archives/edgar/data/6769/000167337916000013/apaq22016ex103.htm) | | |

| [removed: †10.13] [added: †10.14] | | | – | | | [APA Corporation Non-Employee Directors’ Compensation Plan, as amended and restated July 13, 2017 (incorporated by reference to Exhibit 10.1 to Apache Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017, SEC File No. 001-4300).](https://www.sec.gov/Archives/edgar/data/6769/000167337917000021/apaq22017ex101.htm) | | |

| [removed: †10.14] [added: †10.15] | | | – | | | [APA Corporation Outside Directors’ Retirement Plan, as amended and restated July 16, 2014, effective June 30, 2014 (incorporated by reference to Exhibit 10.5 to Apache Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2014, SEC File No. 001-4300).](https://www.sec.gov/Archives/edgar/data/6769/000119312514302538/d742540dex105.htm) | | |

| [removed: †10.15] [added: †10.16] | | | – | | | [APA Corporation Non-Employee Directors’ Restricted Stock Units Program, as amended and restated May 14, 2015 (incorporated by reference to Exhibit 10.6 to Apache Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2015, SEC File No. 001-4300).](https://www.sec.gov/Archives/edgar/data/6769/000119312515281508/d91694dex106.htm) | | |

| [removed: †10.16] [added: †10.17] | | | – | | | [APA Corporation Non-Employee Directors’ Restricted Stock Units Program, effective May 12, 2016, pursuant to the Registrant’s 2016 Omnibus Compensation Plan (incorporated by reference to Exhibit 10.4 to Apache Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, SEC File No. 001-4300).](https://www.sec.gov/Archives/edgar/data/6769/000167337916000013/apaq22016ex104.htm) | | |

| [removed: †10.17] [added: †10.18] | | | – | | | [APA Corporation Outside Directors’ Deferral Program, effective May 12, 2016, pursuant to the Registrant’s 2016 Omnibus Compensation Plan (incorporated by reference to Exhibit 10.5 to Apache Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, SEC File No. 001-4300).](https://www.sec.gov/Archives/edgar/data/6769/000167337916000013/apaq22016ex105.htm) | | |

| [removed: †10.18] [added: †10.21] | | | – | | | [Form of [removed: 2018] [added: 2019] Restricted Stock Unit Award Agreement [removed: dated January 16, 2018] (2016 Omnibus Compensation [removed: Plan)] [added: Plan), dated January 3, 2019] (incorporated by reference to Exhibit [removed: 10.43] [added: 10.47] to Apache Corporation’s Annual Report on Form 10-K for the year ended December 31, [removed: 2017,] [added: 2018,] SEC File No. [removed: 001-04300).](https://www.sec.gov/Archives/edgar/data/6769/000167337918000008/apaexhibit1043201710-k.htm)] [added: 001-04300).](https://www.sec.gov/Archives/edgar/data/6769/000173303719000004/apaexhibit1047201810-k.htm)] | | |

| [removed: †10.19] [added: †10.22] | | | – | | | [Form of [removed: 2018 Cash-Settled] [added: 2019 Cash-Based] Restricted Stock Unit [removed: Award] [added: Grant] Agreement [removed: dated January 16, 2018] (2016 Omnibus Compensation [removed: Plan)] [added: Plan), dated January 3, 2019] (incorporated by reference to Exhibit [removed: 10.44] [added: 10.48] to Apache Corporation’s Annual Report on Form 10-K for the year ended December 31, [removed: 2017,] [added: 2018,] SEC File No. [removed: 001-04300).](https://www.sec.gov/Archives/edgar/data/6769/000167337918000008/apaexhibit1044201710-k.htm)] [added: 001-04300).](https://www.sec.gov/Archives/edgar/data/6769/000173303719000004/apaexhibit1048201810-k.htm)] | | |

| [removed: †10.20] [added: †10.19] | | | – | | | [Form of [removed: 2018] [added: 2019] Performance Share [removed: Grant Agreement] [added: Program] (2016 Omnibus Compensation Plan), dated January [removed: 16, 2018] [added: 3, 2019] (incorporated by reference to Exhibit 10.1 to Apache Corporation’s Current Report on Form 8-K filed January [removed: 19, 2018,] [added: 7, 2019,] SEC File No. [removed: 001-04300).](https://www.sec.gov/Archives/edgar/data/6769/000119312518014351/d505351dex101.htm)] [added: 001-04300).](https://www.sec.gov/Archives/edgar/data/6769/000119312519003870/d667516dex101.htm)] | | |

| [removed: †10.21] [added: †10.20] | | | – | | | [Form of [removed: 2018] [added: 2019 Cash-Based Restricted] Stock [removed: Option] [added: Unit] Grant Agreement (2016 Omnibus Compensation Plan), dated January [removed: 16, 2018] [added: 3, 2019] (incorporated by reference to Exhibit 10.2 to Apache Corporation’s Current Report on Form 8-K filed January [removed: 19, 2018,] [added: 7, 2019,] SEC File No. [removed: 001-04300).](https://www.sec.gov/Archives/edgar/data/6769/000119312518014351/d505351dex102.htm)] [added: 001-04300).](https://www.sec.gov/Archives/edgar/data/6769/000119312519003870/d667516dex102.htm)] | | |

| [removed: †10.22] [added: †10.37] | | | – | | | [Form of [removed: 2019] [added: 2022] Performance Share Program [added: Agreement] (2016 Omnibus Compensation Plan), dated January [removed: 3, 2019 (incorporated] [added: 4, 2022](https://www.sec.gov/Archives/edgar/data/1841666/000119312522004030/d272647dex101.htm) [](https://www.sec.gov/Archives/edgar/data/1841666/000119312522004030/d272647dex101.htm)[(incorporated] by reference to Exhibit 10.1 to [removed: Apache Corporation’s] [added: Registrant’s] Current Report on Form 8-K filed January 7, [removed: 2019,] [added: 2022,] SEC File No. [removed: 001-04300).](https://www.sec.gov/Archives/edgar/data/6769/000119312519003870/d667516dex101.htm)] [added: 001-40144)](https://www.sec.gov/Archives/edgar/data/1841666/000119312522004030/d272647dex101.htm).] | | |

| [removed: †10.23] [added: †10.27] | | | – | | | [Form of [removed: 2019] [added: 2020] Cash-Based Restricted Stock Unit [removed: Grant] [added: Award] Agreement (2016 Omnibus Compensation Plan), dated January 3, [removed: 2019] [added: 2020] (incorporated by reference to Exhibit [removed: 10.2] [added: 10.56] to Apache Corporation’s [removed: Current] [added: Annual] Report on Form [removed: 8-K filed January 7,] [added: 10-K for year ended December 31,] 2019, SEC File No. [removed: 001-04300).](https://www.sec.gov/Archives/edgar/data/6769/000119312519003870/d667516dex102.htm)] [added: 001-4300).](https://www.sec.gov/Archives/edgar/data/6769/000173303720000004/apaexhibit1056201910-k.htm)] | | |

| [removed: †10.24] [added: †10.29] | | | – | | | [Form of [removed: 2019] [added: 2020] Restricted Stock Unit Award Agreement (2016 Omnibus Compensation Plan), dated January 3, [removed: 2019] [added: 2020] (incorporated by reference to Exhibit [removed: 10.47] [added: 10.58] to Apache Corporation’s Annual Report on Form 10-K for [removed: the] year ended December 31, [removed: 2018,] [added: 2019,] SEC File No. [removed: 001-04300).](https://www.sec.gov/Archives/edgar/data/6769/000173303719000004/apaexhibit1047201810-k.htm)] [added: 001-4300).](https://www.sec.gov/Archives/edgar/data/6769/000173303720000004/apaexhibit1058201910-k.htm)] | | |

| [removed: †10.25] [added: †10.28] | | | – | | | [Form of [removed: 2019] [added: 2020] Cash-Based Restricted Stock Unit [removed: Grant] [added: Award] Agreement (2016 Omnibus Compensation Plan), dated January 3, [removed: 2019] [added: 2020] (incorporated by reference to Exhibit [removed: 10.48] [added: 10.57] to Apache Corporation’s Annual Report on Form 10-K for [removed: the] year ended December 31, [removed: 2018,] [added: 2019,] SEC File No. [removed: 001-04300).](https://www.sec.gov/Archives/edgar/data/6769/000173303719000004/apaexhibit1048201810-k.htm)] [added: 001-4300).](https://www.sec.gov/Archives/edgar/data/6769/000173303720000004/apaexhibit1057201910-k.htm)] | | |

| [removed: †10.26] [added: †10.23] | | | – | | | [Amendment of Performance Share Grant Agreement, dated July 29, 2019 (incorporated by reference to Exhibit 10.52 to Apache Corporation’s Annual Report on Form 10-K for year ended December 31, 2019, SEC File No. 001-4300).](http://www.sec.gov/Archives/edgar/data/0000006769/000173303720000004/apaexhibit1052201910-k.htm) | | |

| [removed: †10.27] [added: †10.24] | | | – | | | [Amendment of Restricted Stock Unit Award Agreement, dated July 29, 2019 (incorporated by reference to Exhibit 10.53 to Apache Corporation’s Annual Report on Form 10-K for year ended December 31, 2019, SEC File No. 001-4300).](https://www.sec.gov/Archives/edgar/data/6769/000173303720000004/apaexhibit1053201910-k.htm) | | |

| [removed: †10.28] [added: †10.25] | | | – | | | [Amendment of Stock Option Grant Agreement, dated July 29, 2019 (incorporated by reference to Exhibit 10.54 to Apache Corporation’s Annual Report on Form 10-K for year ended December 31, 2019, SEC File No. 001-4300).](https://www.sec.gov/Archives/edgar/data/6769/000173303720000004/apaexhibit1054201910-k.htm) | | |

| [removed: †10.29] [added: †10.26] | | | – | | | [Form of 2020 Performance Share Program Agreement (2016 Omnibus Compensation Plan), dated January 3, 2020 (incorporated by reference to Exhibit 10.55 to Apache Corporation’s Annual Report on Form 10-K for year ended December 31, 2019, SEC File No. 001-4300).](https://www.sec.gov/Archives/edgar/data/6769/000173303720000004/apaexhibit1055201910-k.htm) | | |

| [removed: †10.30] [added: †10.31] | | | – | | | [Form of [removed: 2020] [added: 2021] Cash-Based Restricted Stock Unit Award Agreement (2016 Omnibus Compensation Plan), dated January [removed: 3, 2020] [added: 5, 2021] (incorporated by reference to Exhibit [removed: 10.56] [added: 10.44] to Apache Corporation’s Annual Report on Form 10-K for year ended December 31, [removed: 2019,] [added: 2020,] SEC File No. [removed: 001-4300).](https://www.sec.gov/Archives/edgar/data/6769/000173303720000004/apaexhibit1056201910-k.htm)] [added: 001-4300).](http://www.sec.gov/Archives/edgar/data/0000006769/000167337921000007/apaexhibit1044202010-k.htm)] | | |

| 10.1 | | | – | | | [Credit Agreement \[USD Facility\], dated as of April 29, 2022, among APA Corporation, the lenders party thereto, the issuing banks party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, Bank of America, N.A., as Syndication Agent, Royal Bank of Canada, HSBC Bank USA, National Association, MUFG Bank, Ltd., Wells Fargo Bank, National Association, Goldman Sachs Bank USA, The Toronto- Dominion Bank, New York Branch, The Bank of Nova Scotia, Houston Branch, Truist Bank, and Mizuho Bank, Ltd., as Co](http://www.sec.gov/Archives/edgar/data/1841666/000119312522135246/d712088dex101.htm)[\-](http://www.sec.gov/Archives/edgar/data/1841666/000119312522135246/d712088dex101.htm)[Documentation Agents (incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed May 2, 2022, SEC File No. 001-40144).](http://www.sec.gov/Archives/edgar/data/1841666/000119312522135246/d712088dex101.htm) | | |

| 10.2 | | | – | | | [Credit Agreement \[GBP Facility\], dated as of April 29, 2022, among APA Corporation, the lenders party thereto, the issuing banks party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, The Toronto-Dominion Bank, London Branch, as Syndication Agent, Bank of America, N.A., Royal Bank of Canada, HSBC Bank USA, National Association, MUFG Bank, Ltd., Wells Fargo Bank, N.A. London Branch, Goldman Sachs Bank USA, The Bank of Nova Scotia, Houston Branch, Truist Bank, and Mizuho Bank, Ltd., as Co](http://www.sec.gov/Archives/edgar/data/1841666/000119312522135246/d712088dex102.htm)[\-](http://www.sec.gov/Archives/edgar/data/1841666/000119312522135246/d712088dex102.htm)[Documentation Agents (incorporated by reference to Exhibit 10.2 to Registrant’s Current Report on Form 8-K filed May 2, 2022, SEC File No. 001-40144).](http://www.sec.gov/Archives/edgar/data/1841666/000119312522135246/d712088dex102.htm) | | |

| *†10.43 | | | – | | | [Form of 2022 Restricted Stock Unit Award Agreement (2016 Omnibus Compensation Plan), dated January 4, 2022.](https://www.sec.gov/Archives/edgar/data/1841666/000178403122000009/apa2021exhibit1043.htm) | | |

[removed: Dated:] [added: | | | | | | | As of] February 22, [removed: 2022][added: 2022 | | |]

| /s/ John J. Christmann IV John J. Christmann IV | | | | | | Director, Chief Executive Officer, and President (principal executive officer) | | | | | | February [removed: 22, 2022] [added: 23, 2023] | | |

| /s/ Stephen J. Riney Stephen J. Riney | | | | | | Executive Vice President and Chief Financial Officer (principal financial officer) | | | | | | February [removed: 22, 2022] [added: 23, 2023] | | |

| /s/ Rebecca A. Hoyt Rebecca A. Hoyt | | | | | | Senior Vice President, Chief Accounting Officer, and Controller (principal accounting officer) | | | | | | February [removed: 22, 2022] [added: 23, 2023] | | |

| /s/ Annell R. Bay Annell R. Bay | | | | | | Director | | | | | | February [removed: 22, 2022] [added: 23, 2023] | | |

| /s/ Juliet S. Ellis Juliet S. Ellis | | | | | | Director | | | | | | February [removed: 22, 2022] [added: 23, 2023] | | |

| /s/ Charles W. Hooper Charles W. Hooper | | | | | | Director | | | | | | February [removed: 22, 2022] [added: 23, 2023] | | |

| /s/ Chansoo Joung Chansoo Joung | | | | | | Director | | | | | | February [removed: 22, 2022] [added: 23, 2023] | | |

| /s/ [removed: John E. Lowe John E. Lowe] [added: H. Lamar McKay H. Lamar McKay] | | | | | | Independent, Non-Executive Chairman of the Board and Director | | | | | | February [removed: 22, 2022] [added: 23, 2023] | | |

| /s/ Amy H. Nelson Amy H. Nelson | | | | | | Director | | | | | | February [removed: 22, 2022] [added: 23, 2023] | | |

| /s/ Daniel W. Rabun Daniel W. Rabun | | | | | | Director | | | | | | February [removed: 22, 2022] [added: 23, 2023] | | |

| /s/ Peter A. Ragauss Peter A. Ragauss | | | | | | Director | | | | | | February [removed: 22, 2022] [added: 23, 2023] | | |

Management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, [removed: 2021.][added: 2022.]

In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in *Internal Control – Integrated Framework (2013).* Based on our assessment, management believes that the Company maintained effective internal control over financial reporting as of December 31, [removed: 2021.][added: 2022.]

To the Shareholders and the Board of Directors of APA [removed: Corporation:][added: Corporation]

We have audited APA Corporation and subsidiaries’ internal control over financial reporting as of December 31, [removed: 2021,] [added: 2022,] based on criteria established in *Internal Control — Integrated Framework* issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria).

In our opinion, APA Corporation and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, [removed: 2021,] [added: 2022,] based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, [removed: 2021] [added: 2022] and [removed: 2020,] [added: 2021,] the related statements of consolidated operations, comprehensive income (loss), cash flows and changes in equity [added: (deficit)] and noncontrolling interest for each of the three years in the period ended December 31, [removed: 2021,] [added: 2022,] and the related notes and our report dated February [removed: 22, 2022] [added: 23, 2023] expressed an unqualified opinion thereon.

We have audited the accompanying consolidated balance sheets of APA Corporation and subsidiaries (the Company) as of December 31, [removed: 2021] [added: 2022] and [removed: 2020,] [added: 2021,] the related statements of consolidated operations, comprehensive income (loss), cash flows and changes in equity [added: (deficit)] and noncontrolling interest for each of the three years in the period ended December 31, [removed: 2021,] [added: 2022,] and the related notes (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, [removed: 2021] [added: 2022] and [removed: 2020,] [added: 2021,] and the results of its operations and its cash flows for each of the three years in the period ended December 31, [removed: 2021,] [added: 2022,] in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, [removed: 2021,] [added: 2022,] based on criteria established in *Internal Control — Integrated Framework* issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February [removed: 22, 2022] [added: 23, 2023] expressed an unqualified opinion thereon.

| *Description of the Matter* | | | | | | At December 31, [removed: 2021,] [added: 2022,] the carrying value of the Company’s property and equipment was [removed: $8,335] [added: $9,012] million, and depreciation, depletion and amortization (DD&A) expense was [removed: $1,360] [added: $1,233] million for the year then ended. As described in Note 1, the Company follows the successful efforts method of accounting for its oil and gas properties. DD&A of the cost of proved oil and gas properties is calculated using the unit-of-production method based on proved oil and gas reserves, as estimated by the Company’s internal reservoir engineers. Proved oil and gas reserves are those quantities of natural gas, crude oil, condensate, and natural gas liquids, which by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations. Significant judgment is required by the Company’s internal reservoir engineers in evaluating geological and engineering data when estimating oil and gas reserves. Estimating reserves also requires the selection of inputs, including oil and gas price assumptions, future operating and capital costs assumptions, and tax rates by jurisdiction, among others. Because of the complexity involved in estimating oil and gas reserves, management engaged independent petroleum engineers to audit the proved oil and gas reserve estimates prepared by the Company’s internal reservoir engineers for select properties as of December 31, [removed: 2021.] [added: 2022.] Auditing the Company’s DD&A calculations is complex because of the use of the work of the internal reservoir engineers and the independent petroleum engineers and the evaluation of management’s determination of the inputs described above used by the engineers in estimating oil and gas reserves. | | |

| *Description of the Matter* | | | | | | At December 31, [removed: 2021,] [added: 2022,] the asset retirement obligation (ARO) balance totaled [removed: $2,130] [added: $1,995] million. As further described in Note 8, the Company’s ARO reflects the estimated present value of the amount of dismantlement, removal, site reclamation, and similar activities associated with the Company’s oil and gas properties and other long-lived assets. The estimation of the ARO related to the North Sea segment requires significant judgment given the magnitude of the expected retirement [removed: costs and higher estimation uncertainty related to the timing of settlements and settlement amounts.] [added: costs.] Auditing the Company’s ARO for the North Sea segment is complex and highly judgmental because of the significant estimation required by management in determining the obligation. In particular, the estimate was sensitive to [removed: significant subjective assumptions such as] retirement cost [removed: estimates and the estimated timing of settlements,] [added: estimates,] which are [removed: both] affected by expectations about future market and economic conditions. | | |

| *How We Addressed the Matter in Our Audit* | | | | | | We obtained an understanding, evaluated the design, and tested the operating effectiveness of the Company’s internal controls over its ARO estimation process, including management’s review of the significant assumptions that have a material effect on the determination of the obligations. We also tested management’s controls over the completeness and accuracy of financial data used in the valuation. To test the ARO for the North Sea segment, our audit procedures included, among others, assessing the significant assumptions and inputs used in the valuation, such as retirement cost [removed: estimates and timing of settlement assumptions.] [added: estimates.] For example, we evaluated retirement cost estimates by comparing the Company’s estimates to recent offshore activities and costs. [removed: Additionally, we compared assumptions for the timing of settlements to production forecasts.] We also involved our internal specialists in testing the underlying retirement cost estimates. | | |

| *Description of the Matter* | | | | | | At December 31, [removed: 2021,] [added: 2022,] the decommissioning contingency for sold Gulf of Mexico properties (decommissioning contingency) balance totaled [removed: $1,186 million.] [added: $1.2 billion.] As further described in Note 11, the Company’s decommissioning contingency reflects the estimated undiscounted potential liability to fund decommissioning of the sold Gulf of Mexico properties. The estimation of the decommissioning contingency requires significant judgment given the magnitude and higher estimation uncertainty of the expected retirement costs. Auditing the Company’s decommissioning contingency is complex and highly judgmental because of the significant estimation required by management in determining the decommissioning contingency. In particular, the estimate was sensitive to retirement cost [removed: and duration] estimates, which are subjective assumptions affected by expectations about future market and economic conditions. | | |

| *How We Addressed the Matter in Our Audit* | | | | | | We obtained an understanding, evaluated the design, and tested the operating effectiveness of the Company’s internal controls over its decommissioning contingency estimation process, including management’s review of the significant assumptions that have a material effect on the determination of the contingency. We also tested management’s controls over the completeness and accuracy of financial data used in the valuation. To test the decommissioning contingency, our audit procedures included, among others, assessing the significant assumptions and inputs used in the valuation, such as retirement cost [removed: and duration] estimates. For example, we evaluated retirement cost estimates by comparing the Company’s estimates to recent offshore activities and costs as well as current bids obtained from service providers. We also involved our internal specialists in testing the underlying retirement cost [removed: and duration] estimates. | | |

| [added: Additional provisions for the year] | | | | | | [removed: For the Year Ended December 31,] [added: 9] | | | | | | [added: 19] | | | | | | [added: 7] | | |

| | | | | | | [removed: 2021] [added: 2022] | | | | | | [removed: 2020] [added: 2021] | | | | | | [removed: 2019] [added: 2020] | | |

| Oil, natural gas, and natural gas liquids production [removed: revenues] [added: revenues(1)] | | | | | | $ | [removed: 6,498] [added: 9,220] | | | | | $ | [removed: 4,037] [added: 6,498] | | | | | $ | [removed: 6,315] [added: 4,037] | |

| Purchased oil and gas sales | | | | | | [removed: 1,487] [added: 1,855] | | | | | | [removed: 398] [added: 1,487] | | | | | | [removed: 176] [added: 398] | | |

| Total revenues | | | | | | [removed: 7,985] [added: 11,075] | | | | | | [removed: 4,435] [added: 7,985] | | | | | | [removed: 6,491] [added: 4,435] | | |

| Derivative instrument gains (losses), net | | | | | | [removed: 94] [added: (114)] | | | | | | [removed: (223)] [added: 94] | | | | | | [removed: (35)] [added: (223)] | | |

| Gain on divestitures, net | | | | | | [removed: 67] [added: 1,180] | | | | | | [removed: 32] [added: 67] | | | | | | [removed: 43] [added: 32] | | |

| [removed: Loss] [added: Losses] on previously sold Gulf of Mexico properties | | | | | | [removed: (446)] | | | | | | [removed: —] | | | | | | [removed: —] | | | [added: | | | | | | | | | | | | | | | (446) | | |]

| Other, net | | | | | | [removed: 228] [added: 148] | | | | | | [removed: 64] [added: 228] | | | | | | [removed: 54] [added: 64] | | |

| | | | | | | [removed: 7,928] [added: 12,132] | | | | | | [removed: 4,308] [added: 7,928] | | | | | | [removed: 6,553] [added: 4,308] | | |

| Lease operating expenses | | | | | | [removed: 1,241] [added: 1,444] | | | | | | [removed: 1,127] [added: 1,241] | | | | | | [removed: 1,447] [added: 1,127] | | |

| Gathering, processing, and [removed: transmission] [added: transmission(1)] | | | | | | [removed: 264] [added: 367] | | | | | | [removed: 274] [added: 264] | | | | | | [removed: 306] [added: 274] | | |

| Purchased oil and gas costs | | | | | | [removed: 1,580] [added: 1,776] | | | | | | [removed: 357] [added: 1,580] | | | | | | [removed: 142] [added: 357] | | |

| Taxes other than income | | | | | | [removed: 204] [added: 268] | | | | | | [removed: 123] [added: 204] | | | | | | [removed: 207] [added: 123] | | |

Dated: February 23, 2023

| /s/ David L. Stover David L. Stover | | | | | | Director | | | | | | February 23, 2023 | | |

February 23, 2023

To the Shareholders and the Board of Directors of APA Corporation

February 23, 2023

(1) For revenues and gathering, processing, and transmission costs associated with Kinetik, refer to [Note 6—Equity Method Interest](#i6237445a6a004121a7d3f066ad8153fe_190) for further detail.

| Net income (loss) including noncontrolling interests | | | | | | $ | 4,082 | | | | | $ | 1,313 | | | | | $ | (4,904) | |

| Depreciation, depletion, and amortization | | | | | | 1,233 | | | | | | 1,360 | | | | | | 1,772 | | |

| Asset retirement obligation accretion | | | | | | 117 | | | | | | 113 | | | | | | 109 | | |

| Impairments | | | | | | — | | | | | | 208 | | | | | | 4,501 | | |

| Acquisition of Delaware Basin properties | | | | | | (591) | | | | | | — | | | | | | — | | |

| Proceeds from sale of Kinetik shares | | | | | | 224 | | | | | | — | | | | | | — | | |

| Deconsolidation of Altus cash and cash equivalents | | | | | | (143) | | | | | | — | | | | | | — | | |

| Dividends paid to APA common stockholders | | | | | | (207) | | | | | | (52) | | | | | | (123) | | |

| | | | | | | 2,708 | | | | | | 2,380 | | |

| | | | | | | 9,012 | | | | | | 8,335 | | |

| | | | | | | $ | 13,147 | | | | | $ | 13,303 | |

| | | | | | | 2,916 | | | | | | 2,117 | | |

| | | | | | | 3,435 | | | | | | 3,896 | | |

| | | | | | | $ | 13,147 | | | | | $ | 13,303 | |

(1) The Altus VIE amounts are disclosed as of December 31, 2021.

All Altus balances were deconsolidated as of February 22, 2022.

Refer to [Note 1—Summary of Significant Accounting Policies](#i6237445a6a004121a7d3f066ad8153fe_172) and [Note 2—Acquisitions and Divestitures](#i6237445a6a004121a7d3f066ad8153fe_178) for further detail.

| Deconsolidation of Altus | | | | | | (642) | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (72) | | | | | | (72) | | |

| Treasury stock activity, net | | | | | | — | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,423) | | | | | | — | | | | | | (1,423) | | | | | | — | | | | | | (1,423) | | |

| BALANCE AT DECEMBER 31, 2022 | | | | | | $ | — | | | | | | | | $ | 262 | | | | | $ | 11,420 | | | | | $ | (5,814) | | | | | $ | (5,459) | | | | | $ | 14 | | | | | $ | 423 | | | | | $ | 922 | | | | | $ | 1,345 | |

As a holding company, APA Corporation’s primary assets are its ownership interests in its subsidiaries.

ALTM qualified as a VIE under GAAP, which APA consolidated because a wholly owned subsidiary of APA had a controlling financial interest and was determined to be the primary beneficiary.

On February 22, 2022, ALTM closed a previously announced transaction to combine with privately owned BCP Raptor Holdco LP (BCP and, together with BCP Raptor Holdco GP, LLC, the Contributed Entities) in an all-stock transaction, pursuant to the Contribution Agreement entered into by and among ALTM, Altus Midstream LP, New BCP Raptor Holdco, LLC (the Contributor), and BCP (the BCP Contribution Agreement).

Pursuant to the BCP Contribution Agreement, the Contributor contributed all of the equity interests of the Contributed Entities (the Contributed Interests) to Altus Midstream LP, with each Contributed Entity becoming a wholly owned subsidiary of Altus Midstream LP (the BCP Business Combination).

Upon closing the transaction, the combined entity was renamed Kinetik Holdings Inc. (Kinetik), and the Company determined that it was no longer the primary beneficiary of Kinetik.

The Company further determined that Kinetik no longer qualified as a VIE under GAAP.

As a result, the Company deconsolidated ALTM on February 22, 2022.

The stockholders agreement entered into by and among the Company, ALTM, BCP, and other related and affiliated entities provides that the Company, through one of its wholly owned subsidiaries, retains the ability to designate a director to the board of directors of Kinetik for so long as the Company and its affiliates beneficially own 10 percent or more of Kinetik’s outstanding common stock.

Based on this board representation, combined with the Company’s stock ownership, management determined it has significant influence over Kinetik.

The Company elected the fair value option to account for its equity method interest in Kinetik.

As of December 31, 2021, approximately $132 million of cash was held by Altus, which was deconsolidated on February 22, 2022.

As a result of the BCP Business Combination, the Company deconsolidated $183 million of Altus GPT net assets on February 22, 2022.

The Company has no goodwill recognized as of December 31, 2022, 2021, or 2020.

TRS costs incurred in 2022 comprised $15 million related to the reorganization, including $9 million for consulting costs and $6 million of separation costs, and $11 million for costs associated with the BCP Business Combination.

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| /s/ H. Lamar McKay H. Lamar McKay | | | | | | Director | | | | | | February 22, 2022 | | |

| /s/ William C. Montgomery William C. Montgomery | | | | | | Director | | | | | | February 22, 2022 | | |

February 22, 2022

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Dividends paid | | | | | | (52) | | | | | | (123) | | | | | | (376) | | |

| | | | | | | 2,380 | | | | | | 1,846 | | |

| | | | | | | 8,335 | | | | | | 8,819 | | |

| | | | | | | $ | 13,303 | | | | | $ | 12,746 | |

| | | | | | | 2,117 | | | | | | 1,308 | | |

| | | | | | | 3,896 | | | | | | 2,705 | | |

| BALANCE AT DECEMBER 31, 2018 | | | | | | $ | — | | | | | | | | $ | 260 | | | | | $ | 12,106 | | | | | $ | (2,048) | | | | | $ | (3,192) | | | | | $ | 4 | | | | | $ | 7,130 | | | | | $ | 1,682 | | | | | $ | 8,812 | |

| Issuance of Altus Preferred Units | | | | | | 517 | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |

On January 4, 2021, Apache Corporation announced plans to implement a holding company reorganization (the Holding Company Reorganization), which was thereafter completed on March 1, 2021.

ALTM is consolidated and qualifies as a variable interest entity (VIE) under GAAP.

APA regularly reassesses whether changes in the facts and circumstances regarding the Company’s involvement with a VIE could cause a change in its conclusions related to consolidation.

Changes in consolidation status, if any, are applied prospectively.

On June 12, 2019, Altus Midstream LP issued and sold Series A Cumulative Redeemable Preferred Units (the Preferred Units) through a private offering that admitted additional limited partners with separate rights for the Preferred Unit holders.

Refer to [Note 13—Redeemable Noncontrolling Interest](#id69a2274c08240fd88f623fae590066c_211) [—](#id69a2274c08240fd88f623fae590066c_211) [Altus](#id69a2274c08240fd88f623fae590066c_211) for further detail.

| Divested unproved properties and leasehold | | | | | | — | | | | | | — | | | | | | 149 | | |

These impairments are discussed in further detail below in “Property and Equipment - Oil and Gas Property” and “Property and Equipment - Gathering, Processing, and Transmission Facilities.”

During the fourth quarter of 2019, following a material reduction to planned investment in the Company’s Alpine High development, the Company recorded impairments totaling $1.4 billion for its Alpine High proved properties and upstream infrastructure which were written down to their fair values.

Altus separately assessed its long-lived infrastructure assets for impairment based on expected reductions to future throughput volumes from Alpine High.

Altus subsequently recorded impairments totaling $1.3 billion on its GPT facilities.

Separate from the Company’s Alpine High and Altus impairments, the Company entered into agreements to sell certain of its assets in the Western Anadarko Basin in Oklahoma and Texas.

As a result of these agreements, a separate impairment analysis was performed for each of the assets within the disposal groups.

The analyses were based on the agreed-upon proceeds less costs to sell for the transaction, a Level 1 fair value measurement.

The carrying value of the net assets to be divested exceeded the fair value implied by the expected net proceeds, resulting in impairments in the second and fourth quarters of 2019 totaling $255 million, including $101 million on the Company’s proved properties, $149 million on its unproved properties, and $5 million on other working capital.

In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, “Financial Instruments-Credit Losses.” The standard changes the impairment model for trade receivables, held-to-maturity debt securities, net investments in leases, loans, and other financial assets measured at amortized cost.

This ASU requires the use of a new forward-looking “expected loss” model compared to the previous “incurred loss” model, resulting in accelerated recognition of credit losses.

The Company adopted this update in the first quarter of 2020.

This ASU primarily applies to the Company’s accounts receivable balances, of which the majority are received within a short-term period of one year or less.

The adoption and implementation of this ASU did not have a material impact on the Company’s financial statements.

| Additional provisions for the year | | | | | | 19 | | | | | | 7 | | | | | | 3 | | |

Unproved leasehold impairments are typically recorded as a component of “Exploration” expense in the Company’s statement of consolidated operations.

However, in 2019, unproved impairments of $149 million were recorded as a component of “Impairments” in connection with an agreement to sell certain non-core leasehold properties in Oklahoma and Texas.

The Company has classified these non-recurring fair value measurements as Level 3 in the fair value hierarchy.

As discussed under “Fair Value Measurements” above, the Company decided to materially reduce its planned investment in the Alpine High play during its fourth-quarter 2019 capital planning review.

Altus management subsequently assessed its long-lived infrastructure assets for impairment given the expected reduction to future throughput volumes and recorded impairments of $1.3 billion on its gathering, processing, and transmission assets.

The fair values of the impaired assets were determined to be $203 million as of the time of the impairment and were estimated using the income approach.