APA (APA) Financial History

The Company’s operations are sensitive to fluctuations in foreign currency exchange rates, particularly among the U.S.

wells may increase the Company’s operating costs or capital expenses or cause the Company to limit production, which could materially and adversely affect its business, results of operations, and financial conditions.

The treatment and disposal of produced water is becoming more highly regulated and restricted.

Attention continues to be given to corporate activities related to climate change and energy transition.

The impacts of climate change, energy transition policies, and ESG-related initiatives could adversely affect the Company’s business, operating results, and financial condition.

Additionally, in the U.S., the Inflation Reduction Act of 2022 introduced a new 15 percent corporate alternative minimum tax (Corporate AMT) for taxable years beginning after December 31, 2022, on applicable corporati…

The Company routinely uses fracturing techniques in the U.S.

As an owner or lessee and operator of oil and gas properties, the Company is subject to various federal, state, local, and foreign laws and regulations relating to the discharge of materials into and protection of the…

RISKS RELATED TO GOVERNMENTAL REGULATION AND POLITICAL MATTERS

The payment of future dividends on, and any repurchases of, the Company’s common stock are each subject to the discretion of the Board of Directors, taking into consideration, among other factors, the Company’s operat…

The financial markets are subject to fluctuation and are vulnerable to unpredictable swings.

The Company receives debt ratings from the major credit rating agencies in the U.S.

The Company conducts many of its exploration and production (E&P) operations through joint operating agreements or joint ventures with other parties, including state-owned or government-controlled entities.

of wells and facilities) are allocated between the parties by means of liability assumptions, indemnities, escrows, trusts, surety bonds, letters of credit, and similar arrangements.

There are numerous uncertainties inherent in the process of estimating crude oil, natural gas, and NGL reserves and their value, which is highly subjective and relies on the quality of available data and the accuracy…

RISKS RELATED TO RESERVES, ESTIMATES, AND LEASEHOLDS

The Company is involved in several large development projects, and the completion of these projects may be delayed beyond the Company’s anticipated completion dates.

While the Company has not suffered any material losses as a result of cyberattacks, there is no assurance that the Company will not suffer such losses in the future.

The Company may be required to expend further resources to protect its digital systems and data as cyber threat actors become more sophisticated and as regulations related to cyberattacks become more complex.

Drilling for oil and gas involves numerous risks, including that the Company may not encounter commercially productive oil or gas reservoirs or may not recover all or any portion of its investment in the wells it drills.

spills, adverse weather conditions, including those impacting the Company’s offshore operating areas, surface spillage and ground water contamination, and failure or loss of equipment.

RISKS RELATED TO OPERATIONS, SAFETY, AND EXPLORATION AND DEVELOPMENT PROJECTS

Public health events, workforce disruptions, or similar global or regional events have previously and may in the future adversely impact the Company’s business, financial condition, and results of operations.

The Company’s commodity price and other risk management and trading activities, including interest rate and foreign exchange hedging, and contracts priced in foreign currencies may prevent it from benefiting fully fro…

A portion of the Company’s crude oil, natural gas, and NGL production in any region may be, and previously have been, interrupted, limited, or shut in from time to time for numerous reasons, including as a result of w…

The Company’s ability to sell crude oil, natural gas, or NGLs, receive market prices for these commodities, meet volume commitments under transportation services agreements, and/or economically market third-party volu…

•political conditions and events in oil and gas producing regions, including instabilities, changes in governments, or armed conflicts;

The Company’s revenues, operating results, future rate of growth, and carrying value of its oil and gas properties depend highly upon the prices it receives for its sales of crude oil, natural gas, and NGL products.

percent of the Company’s estimated discounted future net cash flows.

Further deterioration in the political, economic, and social conditions or other relevant policies of the Egyptian government, such as changes in laws or regulations, export restrictions, expropriation of the Company’…

The Company’s operations outside the U.S.

Any such legislation, regulations, or other regulatory initiatives, if enacted, or additional or increased taxes, assessments, or GHG-related fees on the Company’s operations could lead to increased operating expenses…

Additionally, various states and groups of states have adopted or are considering adopting legislation, regulations, or other regulatory initiatives that are focused on such areas as GHG cap-and-trade programs, carbon…

Certain countries where the Company operates, including the U.K., either tax or assess some form of greenhouse gas (GHG) related fees on the Company’s operations.

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…

exposure to such liability and cost may prove inadequate and result in significant adverse effects to the Company’s results of operations and cash flows.

proved undeveloped reserves will depend on the Company’s development schedule and plans.

Global pandemics and the actions taken by third parties, including, but not limited to, governmental authorities, businesses, and consumers, in response to such pandemics, including the COVID-19 pandemic, have previou…

To the extent that the Company engages in price risk management activities to protect itself from commodity price declines, the Company may be prevented from realizing the benefits of price increases.

RISKS RELATED TO PRICING, DEMAND, AND PRODUCTION FOR CRUDE OIL, NATURAL GAS, AND NGLs

Deterioration in the political, economic, and social conditions or other relevant policies of the Egyptian government, such as changes in laws or regulations, export restrictions, new or increased taxes, fees, or levi…

In addition, certain of the Company’s frontier exploration activities may be subject to legal or administrative challenges in host jurisdictions.

In certain jurisdictions, governmental authorities may be exercised by multiple ministries, agencies, state-owned or government-controlled entities, or other governmental bodies with overlapping or evolving mandates.

•difficulties in enforcing the Company’s rights against a governmental agency or state-owned or government-controlled entities because of the doctrine of sovereign immunity and foreign sovereignty over international o…

•the possible inability to subject foreign persons, especially foreign oil ministries and national oil companies, to the jurisdiction of courts in the U.S.; and

•the possibility of being subject to exclusive jurisdiction of foreign courts or tribunals in connection with legal disputes relating to licenses to operate and concession rights in countries where the Company current…

•laws and policies of the U.S.

•constrained oil or natural gas markets dependent on demand in a single or limited geographical area;

•exchange controls, currency fluctuations, devaluations, or other activities that limit or disrupt markets and restrict payments or the movement of funds;

•taxation policies and investment restrictions;

•dependence on host-country approvals;

•litigation, including as initiated by or otherwise involving non-governmental organizations;

•forced renegotiation or modification of existing contracts, including through prospective or retroactive changes in laws and regulations;

•war, acts of terrorism, expropriation and resource nationalization;

The Company’s operations outside the U.S.

Certain countries where the Company operates, including the U.K., either tax or assess some form of greenhouse gas (GHG) related fees on the Company’s operations.

RISKS RELATED TO CLIMATE CHANGE, ENERGY TRANSITION, AND ESG MATTERS

Additionally, inflation, supply constraints, and limited contractor and vessel availability have raised decommissioning costs in recent periods.

For the Company’s decommissioning obligations in the North Sea, the regulatory framework and the standards applicable to removal and seabed clearance may continue to evolve.

The Company is subject to extensive requirements governing the plugging, abandonment, and decommissioning of wells, facilities, sites, and related infrastructure.

Changes to laws, regulations, guidance, and industry standards, or interpretations thereof, or higher than anticipated costs for asset retirement and decommissioning obligations could adversely affect the Company’s re…

Federal, state, and foreign income tax laws affecting oil and gas exploration, development, and extraction may be modified by administrative, legislative, or judicial interpretation at any time.

amount of dividends the Company pays to shareholders, or reduction in the pace of share repurchases, could have an adverse effect on the market price of the Company’s common stock.

RISKS RELATED TO CAPITAL MARKETS, LIQUIDITY, AND TAX MATTERS

The agreements relating to the Company’s divestment of domestic and international assets generally contain provisions pursuant to which liabilities related to past and future operations (one of the most significant of…

RISKS RELATED TO COUNTERPARTIES AND JOINT VENTURES

Delays or adverse outcomes in permitting, litigation (including parties seeking legal or equitable relief to prevent or otherwise limit exploration activities, such as for the acquisition of seismic data or for drilli…

The Company’s exploration and development portfolio includes higher‑risk frontier opportunities, including in Alaska and offshore Suriname and Uruguay, which may involve extended timelines, complex permitting and stak…

Frontier exploration and development projects, including those in new or re-entered jurisdictions, involve heightened operational, regulatory, and execution risks that could adversely affect the Company’s results of o…

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, cratering, pipeline o…

Public health events, including related workforce availability constraints, travel restrictions, supply chain disruptions, or government-mandated operational limitations, have previously adversely impacted and may fro…

To the extent that the Company engages in price risk management activities to protect itself from commodity price declines, the Company may be prevented from realizing the benefits of price increases.

•the timing, scope, implementation, and potential judicial review of energy transition and climate-related policies and regulations (such as methane fees, emissions reporting requirements, carbon pricing mechanisms, a…

•demand, which fluctuates with changes in market and economic conditions;

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

RISKS RELATED TO COMMODITY PRICES, DEMAND, AND PRODUCTION