Apache Corporation

Apache Corporation
Public company
Traded as NYSE: APA
S&P 500 Component
Industry Petroleum industry
Founded 1954
Founder Truman Anderson
Charles Arnao
Raymond Plank
Headquarters Houston, Texas, United States
Key people
John J. Christmann IV, CEO & President[1]
Products Petroleum
Natural gas
Production output
438 thousand barrels of oil equivalent (2,680,000 GJ) per day[1]
Revenue Decrease US$6.383 billion (2015)[1]
Decrease -US$22.348 billion (2015)[1]
Total assets Decrease US$18.842 billion (2015)[1]
Total equity Decrease US$4.228 billion (2015)[1]
Number of employees
3,860 (2015)[1]
Website ApacheCorp.com
The headquarters of Apache Corporation in Post Oak Central, Houston, Texas.

Apache Corporation is a petroleum and natural gas exploration and production company headquartered in Houston, Texas.

Current operations

In 2015, the company's total production was 195 thousand barrels of oil equivalent (1,190,000 GJ) per day, of which 47% was in the United States, 13% was in Canada, 27% was in Egypt, and 13% was in the North Sea.[1]

As of December 31, 2015, the company had 1.564 billion barrels of oil equivalent (9.57×109 GJ) of estimated proved reserves, of which 54% was in the United States, 18% was in Canada, 19% was in Egypt, and 9% was in the North Sea.[1]

Almost all of the company's reserves in the United States are in the Permian Basin. The company also has reserves in western Oklahoma, the Texas Panhandle, and south Texas.[1]

Apache has been operating in Egypt since 1994. Despite the political turmoil in Egypt, the company's operations, which are in remote areas of the Western Desert, have not experienced production interruptions.[1]

Apache has been operating in the North Sea since 2003, predominately in the Forties oilfield.[1]


In 1954, the Apache Oil Corporation was founded in Minneapolis, Minnesota, by Truman Anderson, Raymond Plank and Charles Arnao with $250,000 in funding.[2]

In 1955, the first wells were drilled in the Cushing field, between Tulsa and Oklahoma City.[2]

In 1960, Apache acquired interests in the Foshay Tower, a Minneapolis landmark. The 32-story imitation of the Washington Monument, became Apache’s headquarters from the early 1960s until 1984.[2]

In 1967, the oil well Fagerness #1 was drilled, yielding the company's first major discovery.[2]

In 1969, Apache Corporation became a public company via an initial public offering and its shares were listed on the New York Stock Exchange (NYSE: APA).[2]

In 1970, Apache diversified into agriculture with the acquisition of the S&J Ranch in California. The ranch produced citrus fruit, figs, pistachios, olives, and almonds.[3]

In 1971, it formed Apache Exploration Company (subsequently “Apexco”) as its oil and gas operating company.[2]

In 1977, the company sold Apexco and its non-petroleum holdings, including the ranch, and reinvested into a farm-in agreement with GHK to operate its wells in the Anadarko Basin.[2]

In 1980, the company acquired a non-operating interest, via a participation in a Royal Dutch Shell joint venture, in operations in the Gulf Of Mexico.[4]

In 1981, the company created Apache Petroleum Company (APC), the first public master limited partnership in the United States.[4][5]

In 1985, the company acquired oil and gas wells in 8 states from David Holdings for $200 million. In 1986, the company acquired oil and gas assets in the Gulf of Mexico from Occidental Petroleum. [6][4]

In 1987, the company moved its headquarters from Minneapolis to Denver.[4]

In 1991, the company doubled its reserves by acquiring assets from Amoco, including a position in the Permian Basin of West Texas, for $515 million and 2 million shares of Apache.[7][8][9]

In 1992, Apache moved its headquarters to Houston, Texas and signed a lease for 220,000 square feet of office space.[7][10]

In 1993, Apache acquired Hadson Energy Resources in a $58 million transaction, expanding its assets to offshore Western Australia.[7][11]

In 1994, the company entered Egypt by acquiring a 25 percent non-operated interest in the Qarun Concession, operated by the Phoenix Resource Companies.[7] Production began in December 1995.[12]

In 1995, the company acquired Dekalb Energy Canada, marking Apache's return to Canada, in a $285 million stock transaction.[7][13]

In 1995, Apache also acquired 315 oil and gas fields in the Permian Basin, the Texas-Louisiana Gulf Coast, western Oklahoma, East Texas, the Rocky Mountains and the Gulf of Mexico from Texaco.[7][14]

In 1996, Apache acquired Phoenix Resources and took over operations of the Qarun Concession in Egypt.[15]

In 1999, the company acquired fields and leases in the Gulf of Mexico from Royal Dutch Shell for $715 million in cash, plus 1 million shares of stock.[16]

In 2001, Apache acquired operations in the Western Desert of Egypt from Repsol YPF for $410 million.[17]

In 2002, Apache Corporation drilled its first deepwater wells in the West Mediterranean Concession of offshore Egypt.[18]

In February 2003, Apache appointed Floyd R. Price and Rodney J. Eichler as corporate Executive Vice Presidents and Jon A. Jeppesen as corporate Senior Vice President.[19]

In 2003, Apache acquired the Forties oilfield, the largest field ever discovered in the United Kingdom North Sea as well as assets in the Gulf of Mexico from BP for $1.3 billion.[20]

In 2005, Apache and ExxonMobil completed a series of agreements that provided for transfers and joint ventures across a broad range of properties in Western Canada.[21]

Later in 2005, the company partially sold its stake in the deepwater section of Egypt's concession.[22]

In 2006, Apache completed the sale of its oil production interest in China to Australia-based ROC Oil Company Limited for US$260 million.[23]

In 2006, Apache bought many Gulf of Mexico Shelf properties from BP.[24]

In 2007, A test horizontal well at the Van Gogh project, in Exmouth Gulf, Western Australia, produced 9,694 barrels per day.[25]

In 2010, Apache started production from the Van Gogh development offshore Western Australia.[26]

In 2010, a Federal judge upheld Apache's decision to exclude from its annual meeting ballot a corporate governance proposal from a person who had not proven on a timely basis that he actually was one of the company's shareholders.[27]

In 2010, Apache acquired Mariner Energy for $2.7 billion.[28]

In 2010, Apache acquired assets in the Gulf of Mexico from Devon Energy for $1.05 billion.[29]

In 2010, Apache purchased assets from BP in Texas, southeast New Mexico, western Canada, and Egypt for $7 billion.[30]

In 2011, Apache announced the discovery of eight new oil wells in Egypt's Faghur Basin.[31]

In 2012, Apache purchased assets in the Beryl field in the North Sea from ExxonMobil.[32]

In 2012, Apache completed the acquisition of Cordillera Energy Partners in a deal worth $2.5 billion in cash and 6.3 million shares of common stock. The acquisition added approximately 71 million barrels of oil equivalent (430,000,000 GJ) to Apache's reserves and strengthened its position across western Oklahoma and the Texas Panhandle.[33]

In November 2013, Apache completed the sale of a non-controlling 1/3 share of its Egyptian assets to Sinopec [34]

In 2015, the company sold its assets in Western Australia for $2.1 billion.[35]


2013 toxic waste spill

On June 1, 2013 an Apache pipeline in northern Alberta, Canada was noticed to have ruptured, spilling 60,000 barrels (9.5 million litres) of toxic waste in what was cited as one of the largest of such disasters in recent history in North America.[36][37]

Pipeline explosion

In 2008, the natural gas pipeline explosion at Apache's Varanus Island processing hub on 3 June 2008 led to the 2008 Western Australian gas crisis. Apache restored 60% of Varanus Island gas deliveries on August 8, 2008.[38] The Australian government was forced to drop charges as a result of a technicality. [39]

Attempts to limit shareholder proposals

In 2007, Apache CEO G. Steven Farris wrote to the Securities and Exchange Commission in favor of limits on nonbinding shareholder proposals at public company annual meetings.[40]


  1. 1 2 3 4 5 6 7 8 9 10 11 12 Apache Corporation 2015 Form 10-K
  2. 1 2 3 4 5 6 7 Apache Corporation History: 1954-1979
  3. Apache: Alternate Paths
  4. 1 2 3 4 Apache Corporation History: 1980s
  5. "Market Place: The Apache Partnership". New York Times. March 5, 1981.
  6. "Oil Partnership To Buy 4 Firms Of Occidental". Chicago Tribune. May 22, 1986.
  7. 1 2 3 4 5 6 Apache Corporation History: 1990s
  8. "Amoco Unit in Deal To Sell U.S. Reserves". New York Times. May 3, 1991.
  9. "Apache to Double Reserves with Amoco Deal". Oil and Gas Journal. May 13, 1991.
  10. "Real Estate; Office Space In Houston: Plenty of It". New York Times. April 15, 1992.
  11. "Apache to Buy 68% Stake in Hadson Energy". New York Times. June 19, 1993.
  12. "Egypt western desert activity hits high gear". Oil and Gas Journal. November 4, 1996.
  13. "Apache to Acquire Dekalb Energy". New York Times. December 22, 1994.
  14. "Apache To Buy Fields From Texaco". New York Times. November 30, 1994.
  15. "Apache Agrees to Acquire Phoenix Resources". New York Times. March 29, 1996.
  16. "Apache is Buying Fields and Leases from Shell Unit". New York Times. April 30, 1999.
  17. "Apache to Acquire Repsol's Egypt Interests for US$410 Million; A 'Step Change' for Apache's Already Formidable Operations in Egypt". PRNewswire. January 23, 2001.
  18. "Apache Reports Third Successful Gas Discovery in Deep Water Offshore Egypt". PRNewswire. September 17, 2002.
  19. "Apache names two executive vice-presidents and one senior vice-president". Oil & Gas Journal. February 25, 2003.
  20. "Apache to buy North Sea Forties oil field stake, Gulf of Mexico assets from BP for $1.3 billion". Oil & Gas Journal. January 13, 2003.
  21. "ExxonMobil and Apache Announce Program to Expand Exploration and Development in Western Canada". PRNewswire. May 5, 2005.
  22. "Apache Corp., Amerada Hess to swap field assets". October 13, 2005. Retrieved June 20, 2013.
  23. "Apache to Sell Its Oil Production Interest in China". PRNewswire. June 27, 2006.
  24. "Apache to Acquire BP's Remaining Gulf of Mexico Shelf Producing Properties". PRNewswire. April 19, 2006.
  25. "Apache tests Exmouth basin well off W. Australia". Oil & Gas Journal. June 22, 2007.
  26. "Apache Reports First Oil From Van Gogh Development in Western Australia's Exmouth Basin". PRNewswire. February 16, 2010.
  27. "Apache can reject proxy proposal, judge rules". Chron. March 11, 2010.
  28. "Apache Gains Strategic Position in Deepwater Gulf With Mariner Merger". PRNewswire. April 15, 2010.
  29. "Apache Completes Acquisition of Devon's Gulf of Mexico Shelf Assets". PRNewswire. June 10, 2010.
  30. "Apache to Acquire BP Assets in Permian Basin, Canada and Egypt For $7 Billion". PRNewswire. July 20, 2010.
  31. "Apache presses Egypt Faghur basin discoveries, 3D". Oil & Gas Journal. March 26, 2012.
  32. "Apache Completes Acquisition of ExxonMobil's Beryl Field, Other UK North Sea Assets". PRNewswire. January 3, 2012.
  33. "Apache Completes Cordillera Energy Partners III, LLC Acquisition". PRNewswire. May 1, 2012.
  34. "Apache Completes Egypt Partnership With Sinopec". PRNewswire. November 14, 2013.
  35. "Apache agrees to sell Australian operations for $2.1 billion". PRNewswire. April 8, 2015.
  36. "Massive Alberta waste water spill will kill plants, says ecologist". CBC News. 13 June 2013. Retrieved 14 June 2013.
  37. "Toxic waste spill in northern Alberta biggest of recent disasters in North America". The Globe and Mail. Toronto. 12 June 2013.
  38. "Apache Corporation Form 10-Q Quarterly Report, November 10, 2008".
  39. "State drops lawsuit over Varanus Island gas explosion". WA Today. March 29, 2012.
  40. "Farris SEC letter October 2, 2007" (PDF).

External links

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