APA · 10-Q · 2026Q2 · Full report
Gulf of America Decommissioning
APA Corp · 2026-08-06 · Importance 70 · Surprise 68 · From source text
APA recorded an $847 million contingent liability at June 30, 2026 for estimated decommissioning costs on Legacy Gulf of America Assets that it may be required to perform after Fieldwood’s inability to fund the obligations. The liability declined from $881 million at December 31, 2025, a reduction of $34 million. APA also recorded a $41 million asset representing the remaining amount expected to be reimbursed from security related to the decommissioning costs. Apache may be required to fund up to $400 million in loans to GOM Shelf for decommissioning after available trust and production proceeds are exhausted.
Key facts
- Apache agreed upon resolution of GOM Shelf’s second bankruptcy to loan GOM Shelf up to $400 million to perform decommissioning, with such loans and related obligations secured by first and prior liens on the Legacy GOA Assets. source
- The Company recorded contingent liabilities of $847 million and $881 million for the periods ended June 30, 2026 and December 31, 2025, respectively, representing estimated decommissioning costs it may be required to perform on the Legacy GOA Assets. source
- Asset retirement obligation total liability as of December 31, 2025: $2,880 million and as of June 30, 2026: $2,930 million. source
- By letter dated April 5, 2022 (replacing two earlier letters) and by subsequent letter dated March 1, 2023, GOM Shelf notified BSEE that it was unable to fund the decommissioning obligations on certain Legacy GOA Assets. source
- Asset retirement obligation, long-term (less current portion) as of June 30, 2026: $2,723 million. source
- As of June 30, 2026, the Company has recorded an asset of $41 million representing the remaining amount the Company expects to be reimbursed from security related to GOA decommissioning costs. source
- There have been no other changes in estimates from December 31, 2025 that would have a material impact on the Company’s financial position, results of operations, or liquidity. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| assets | positive | committed | +0.9% | Apache agreed upon resolution of GOM Shelf’s second bankruptcy to loan GOM Shelf up to $400 million to perform decommissioning, with such… |
| liability | negative | realized | -0.3% | Asset retirement obligation total liability as of December 31, 2025: $2,880 million and as of June 30, 2026: $2,930 million. |
| liability | negative | realized | -0.2% | The Company recorded contingent liabilities of $847 million and $881 million for the periods ended June 30, 2026 and December 31, 2025,… |
| liability | negative | contingent | — | By letter dated April 5, 2022 (replacing two earlier letters) and by subsequent letter dated March 1, 2023, GOM Shelf notified BSEE that… |