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Pricing Term Sheet
  Free Writing Prospectus
dated as of July 22, 2010
  Filed pursuant to Rule 433
 
  Relating to
 
  the Preliminary Prospectus Supplements each dated July 20, 2010 to
 
  the Prospectus dated December 2, 2008
 
  File No. 333-155884
Apache Corporation
Concurrent Offerings of
23,000,000 Shares of Common Stock, par value $0.625 per Share
(the “common stock offering”)
and
22,000,000 Depositary Shares
Each Representing a 1/20th Interest in a Share of
6.00% Mandatory Convertible Preferred Stock, Series D
(the “depositary shares offering”)
The information in this pricing term sheet relates only to the common stock offering and the depositary shares offering and should be read together with (i) the preliminary prospectus supplement dated July 20, 2010 relating to the common stock offering (the “common stock preliminary prospectus supplement”), including the documents incorporated by reference therein, (ii) the preliminary prospectus supplement dated July 20, 2010 relating to the depositary shares offering (the “depositary shares preliminary prospectus supplement”), including the documents incorporated by reference therein and (iii) the related base prospectus dated December 2, 2008, each filed pursuant to Rule 424(b) under the Securities Act of 1933, as amended, Registration Statement No. 333-155884. Neither the closing of the common stock offering nor the closing of the depositary share offering is contingent on the successful completion of the other offering. Terms used but not defined in this pricing term sheet have the meanings given to such terms in the common stock preliminary prospectus supplement or the depositary shares preliminary prospectus supplement, as applicable.
     
Issuer:
  Apache Corporation
 
    
Ticker / Exchanges for common stock:
  APA / the New York Stock Exchange, the NASDAQ Global Select Market and the Chicago Stock Exchange
 
    
Trade date:
  July 22, 2010.
 
    
Settlement date:
  July 28, 2010.
 
    
Common Stock Offering
    
 
    
Common stock offered:
  23,000,000 shares of the Issuer’s common stock, par value $0.625 per share (the “common stock”)
 
    
Option for underwriters to purchase additional shares of common stock:
  3,450,000 additional shares
 
    
Last reported sale price of common stock on NYSE on July 22, 2010:
  $89.28 per share of common stock

 

 

     
Public offering price:
  $88.00 per share / $2,024,000,000 total, excluding the underwriters’ option to purchase additional shares.
 
    
Joint Book-Running Managers:
  Goldman, Sachs & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc. and J.P. Morgan Securities Inc.
 
    
CUSIP:
  037411105 
 
    
Depositary Shares Offering
    
 
    
Depositary shares offered:
  22,000,000 depositary shares, each of which represents a 1/20th interest in a share of the Issuer’s 6.00% Mandatory Convertible Preferred Stock, Series D (“mandatory convertible preferred stock”). At the consummation of the depositary shares offering, the Issuer will issue 1,100,000 shares of mandatory convertible preferred stock, subject to the underwriters’ option to purchase additional depositary shares.
 
    
Option for underwriters to purchase additional depositary shares:
  3,300,000 additional depositary shares (corresponding to 165,000 additional shares of the mandatory convertible preferred stock).
 
    
Public offering price:
  $50 per depositary share / $1,100,000,000 total, excluding the underwriters’ option to purchase additional depositary shares.
 
    
Dividends:
  6.00% on the liquidation amount of $1,000 for each share of mandatory convertible preferred stock per year (equivalent to $60.00 per annum per share of mandatory convertible preferred stock, corresponding to $3.00 per annum per depositary share). The dividend payable on the first dividend payment date, if declared, is expected to be $15.50 per share of mandatory convertible preferred stock and on each subsequent dividend payment date, if declared, is expected to be $15.00 per share of mandatory convertible preferred stock (equivalent to $0.775 and $0.75, respectively, per depositary share).
 
    
 
  The Issuer will pay dividends in cash on each dividend payment date, and on August 1, 2013 or any earlier conversion date, the Issuer may pay dividends in cash, shares of the common stock or a combination thereof, at its election and subject to the share cap. The “share cap” is an amount per share equal to the product of (i) two and (ii) the maximum conversion rate, subject to adjustment as described in the depositary shares preliminary prospectus supplement.
 
    
Dividend payment dates:
  If declared, February 1, May 1, August 1 and November 1 of each year, commencing on November 1, 2010.
 
    
Authorized share condition:
  The Issuer has reserved 28,750,920 shares as designated shares (as defined in the depositary shares preliminary prospectus supplement) for conversions of the mandatory convertible preferred stock and the authorized share condition as set forth in the depositary share preliminary prospectus supplement is satisfied as of the date hereof; provided, however, that to the extent that the underwriters do not exercise their option to purchase additional depositary shares, the number of designated shares will be reduced proportionately (and, for

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    the avoidance of doubt, will in no case be less than 25,000,800 shares).
 
        
Mandatory conversion date:   August 1, 2013.
 
        
Initial price:   $88.00. 
 
        
Threshold appreciation price:   $109.12, which represents an appreciation of approximately 24.0% over the initial price.
 
        
Conversion rate per share of mandatory convertible preferred stock:   The conversion rate for each share of mandatory convertible preferred stock will not be more than 11.364 shares of the common stock and not less than 9.164 shares of the common stock (respectively, the “maximum conversion rate” and “minimum conversion rate”) (and, correspondingly, the conversion rate for each depositary share will not be more than 0.5682 shares of the common stock and not less than 0.4582 shares of the common stock).
 
        
    The following table illustrates the conversion rate per share of the mandatory convertible preferred stock, subject to adjustment as described in the depositary shares preliminary prospectus supplement, based on the applicable market value of the common stock on the mandatory conversion date:
 
        
 
  Applicable Market Value Per
Share on the Mandatory
Conversion Date 		  Conversion Rate per Share of Mandatory Convertible Preferred Stock
 
        
 
  Less than or equal to the initial price   11.364 shares of common stock
 
        
 
  Greater than the initial price and less than the threshold appreciation price   $1,000, divided by the applicable market value
 
        
 
  Equal to or greater than the threshold appreciation price   9.164 shares of common stock
 
        
    If the applicable market value of the common stock exceeds the threshold appreciation price, the value of the common stock received by the holder of a depositary share upon conversion will be approximately 80.64% of the value of the common stock that could be purchased with $50 in the concurrent common stock offering.
 
        
    The following table illustrates the conversion rate per depositary share, subject to adjustment as described in the depositary shares preliminary prospectus supplement, based on the applicable market value of the common stock on the mandatory conversion date:
 
        
 
  Applicable Market Value Per
Share on the Mandatory
Conversion Date 		  Conversion Rate per Depositary Share
 
        
 
  Less than or equal to the initial price   0.5682 shares of common stock
 
        
 
  Greater than the initial price and less than the threshold appreciation price   $50, divided by the applicable market value
 
        
 
  Equal to or greater than the threshold appreciation price   0.4582 shares of common stock

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Optional conversion:
  At any time prior to July 15, 2013, other than during the fundamental change conversion period and as long as no shares of fundamental change preferred stock (as defined in the depositary shares preliminary prospectus supplement) are outstanding, a holder of mandatory convertible preferred stock may elect to convert such holder’s shares of mandatory convertible preferred stock at the minimum conversion rate of 9.164 shares of the common stock per share of mandatory convertible preferred stock (equivalent to 0.4582 shares of the common stock per depositary share), subject to adjustment as described in the depositary shares preliminary prospectus supplement. Because each depositary share represents a 1/20th fractional interest in a share of mandatory convertible preferred stock, a holder of depositary shares may only convert its depositary shares in lots of 20 depositary shares.
 
    
Fundamental change:
  The following table sets forth the fundamental change conversion rate per share of mandatory convertible preferred stock based on the effective date of the fundamental change and the stock price in the fundamental change:
                                                                                                                 
Stock Price on Effective Date
Effective Date   $20.00   $40.00   $60.00   $75.00   $80.00   $88.00   $95.00   $100.00   $110.00   $125.00   $150.00   $200.00   $250.00   $300.00
July 28, 2010
    18.890       14.786       13.026       12.178       11.952       11.636       11.400       11.250       10.992       10.688       10.336       9.946       9.746       9.626  
November 1, 2010
    18.310       14.540       12.886       12.066       11.844       11.534       11.302       11.154       10.900       10.604       10.260       9.888       9.702       9.592  
February 1, 2011
    17.716       14.284       12.740       11.950       11.734       11.428       11.200       11.054       10.806       10.514       10.180       9.828       9.654       9.554  
May 1, 2011
    17.114       14.022       12.596       11.834       11.622       11.324       11.098       10.954       10.708       10.420       10.098       9.764       9.606       9.516  
August 1, 2011
    16.508       13.760       12.456       11.724       11.516       11.222       10.998       10.854       10.610       10.326       10.012       9.700       9.558       9.478  
November 1, 2011
    15.896       13.494       12.322       11.620       11.416       11.122       10.898       10.756       10.510       10.228       9.924       9.636       9.510       9.440  
February 1, 2012
    15.276       13.224       12.192       11.522       11.320       11.028       10.800       10.656       10.408       10.128       9.832       9.568       9.462       9.402  
May 1, 2012
    14.652       12.944       12.068       11.434       11.234       10.938       10.706       10.558       10.304       10.020       9.734       9.500       9.412       9.364  
August 1, 2012
    14.022       12.656       11.952       11.362       11.162       10.858       10.616       10.460       10.194       9.904       9.630       9.432       9.364       9.326  
November 1, 2012
    13.386       12.358       11.842       11.312       11.112       10.794       10.532       10.364       10.076       9.774       9.516       9.364       9.314       9.286  
February 1, 2013
    12.744       12.046       11.732       11.302       11.104       10.760       10.464       10.268       9.940       9.618       9.392       9.298       9.268       9.248  
May 1, 2013
    12.098       11.728       11.592       11.348       11.172       10.798       10.424       10.170       9.754       9.416       9.270       9.234       9.220       9.208  
August 1, 2013
    11.364       11.364       11.364       11.364       11.364       11.364       10.526       10.000       9.164       9.164       9.164       9.164       9.164       9.164  

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  The exact stock price and effective date of the fundamental change may not be set forth on the table, in which case:
  •   if the stock price is between two stock price amounts on the table or the effective date is between two dates on the table, the fundamental change conversion rate will be determined by straight-line interpolation between the fundamental change conversion rates set forth for the higher and lower stock price amounts and the two dates, as applicable, based on a 365-day year;
 
  •   if the stock price is in excess of $300.00 per share (subject to adjustment as described in the depositary shares preliminary prospectus supplement), then the fundamental change conversion rate will be the minimum conversion rate, subject to adjustment as described in the depositary shares preliminary prospectus supplement; and
 
  •   if the stock price is less than $20.00 per share (subject to adjustment as described in the depositary shares preliminary prospectus supplement) (the “minimum stock price”), then the fundamental change conversion rate will be determined (a) as if the stock price equaled the minimum stock price and (b) if the effective date is between two dates on the table, using straight-line interpolation, as described in the depositary shares preliminary prospectus supplement, subject to adjustment.
     
 
  The following table sets forth the fundamental change conversion rate per depositary share based on the effective date of the fundamental change and the stock price in the fundamental change:
                                                                                                                 
Stock Price on Effective Date
Effective Date   $20.00   $40.00   $60.00   $75.00   $80.00   $88.00   $95.00   $100.00   $110.00   $125.00   $150.00   $200.00   $250.00   $300.00
July 28, 2010
    0.9445       0.7393       0.6513       0.6089       0.5976       0.5818       0.5700       0.5625       0.5496       0.5344       0.5168       0.4973       0.4873       0.4813  
November 1, 2010
    0.9155       0.7270       0.6443       0.6033       0.5922       0.5767       0.5651       0.5577       0.5450       0.5302       0.5130       0.4944       0.4851       0.4796  
February 1, 2011
    0.8858       0.7142       0.6370       0.5975       0.5867       0.5714       0.5600       0.5527       0.5403       0.5257       0.5090       0.4914       0.4827       0.4777  
May 1, 2011
    0.8557       0.7011       0.6298       0.5917       0.5811       0.5662       0.5549       0.5477       0.5354       0.5210       0.5049       0.4882       0.4803       0.4758  
August 1, 2011
    0.8254       0.6880       0.6228       0.5862       0.5758       0.5611       0.5499       0.5427       0.5305       0.5163       0.5006       0.4850       0.4779       0.4739  
November 1, 2011
    0.7948       0.6747       0.6161       0.5810       0.5708       0.5561       0.5449       0.5378       0.5255       0.5114       0.4962       0.4818       0.4755       0.4720  
February 1, 2012
    0.7638       0.6612       0.6096       0.5761       0.5660       0.5514       0.5400       0.5328       0.5204       0.5064       0.4916       0.4784       0.4731       0.4701  
May 1, 2012
    0.7326       0.6472       0.6034       0.5717       0.5617       0.5469       0.5353       0.5279       0.5152       0.5010       0.4867       0.4750       0.4706       0.4682  
August 1, 2012
    0.7011       0.6328       0.5976       0.5681       0.5581       0.5429       0.5308       0.5230       0.5097       0.4952       0.4815       0.4716       0.4682       0.4663  
November 1, 2012
    0.6693       0.6179       0.5921       0.5656       0.5556       0.5397       0.5266       0.5182       0.5038       0.4887       0.4758       0.4682       0.4657       0.4643  
February 1, 2013
    0.6372       0.6023       0.5866       0.5651       0.5552       0.5380       0.5232       0.5134       0.4970       0.4809       0.4696       0.4649       0.4634       0.4624  
May 1, 2013
    0.6049       0.5864       0.5796       0.5674       0.5586       0.5399       0.5212       0.5085       0.4877       0.4708       0.4635       0.4617       0.4610       0.4604  
August 1, 2013
    0.5682       0.5682       0.5682       0.5682       0.5682       0.5682       0.5263       0.5000       0.4582       0.4582       0.4582       0.4582       0.4582       0.4582  
     
 
  Because each depositary share represents a 1/20th fractional interest in a share of mandatory convertible preferred stock, a holder of depositary shares may only convert its depositary shares upon the occurrence of a fundamental change in lots of 20 depositary shares.
 
    
Joint Book-Running Managers:
  Goldman, Sachs & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc. and J.P. Morgan Securities Inc.

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Listing:
  The Issuer will apply to list the depositary shares on the New York Stock Exchange, and expects trading on the New York Stock Exchange to begin within 5 days of the initial issuance of the depositary shares.
 
    
CUSIP / ISIN:
  037411808 / US0374118083
The Issuer has filed a registration statement (including a prospectus and related preliminary prospectus supplements for the offerings) with the U.S. Securities and Exchange Commission (the “SEC”) for the offerings to which this communication relates. Before you invest, you should read the common stock preliminary prospectus supplement or the depositary shares preliminary prospectus supplement, as the case may be, the accompanying prospectus in that registration statement and the other documents the Issuer has filed with the SEC for more complete information about the Issuer and the offering. You may get these documents for free by visiting EDGAR on the SEC’s website at http://www.sec.gov. Alternatively, copies may be obtained from sales representatives of Goldman, Sachs & Co., Attention: Prospectus Department, 200 West Street, New York, NY 10282-2198, toll-free (866) 471-2526 or by emailing prospectus-ny@ny.email.gs.com; BofA Merrill Lynch, 4 World Financial Center, New York, NY 10080, Attn: Prospectus Department, telephone: 866-500-5408 or by emailing dg.prospectus_requests@baml.com; Citigroup Global Markets Inc., Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY 11220, telephone: (800) 831-9146 or by emailing batprospectusdept@citi.com; and J.P. Morgan Securities Inc. via Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, telephone: (866) 803-9204.
This communication should be read in conjunction with the common stock preliminary prospectus supplement or the depositary shares preliminary prospectus supplement, as the case may be, and the accompanying prospectus. The information in this communication supersedes the information in the common stock preliminary prospectus supplement or the depositary shares preliminary prospectus supplement, as the case may be, and the accompanying prospectus to the extent it is inconsistent with the information in such preliminary prospectus supplement or the accompanying prospectus.
ANY DISCLAIMERS OR OTHER NOTICES THAT MAY APPEAR BELOW ARE NOT APPLICABLE TO THIS COMMUNICATION AND SHOULD BE DISREGARDED. SUCH DISCLAIMERS OR OTHER NOTICES WERE AUTOMATICALLY GENERATED AS A RESULT OF THIS COMMUNICATION BEING SENT VIA BLOOMBERG OR ANOTHER EMAIL SYSTEM.

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