Apache Earnings Beat as Permian Production Hits Record

Independent energy company Apache Corp reported better than expected first quarter earnings after the close Wednesday. $APA also raised it’s production outlook with record Permian production

Independent energy company Apache Corp reported better than expected first quarter earnings after the close Wednesday. $APA also raised it’s production outlook with record Permian production. 

Apache Portfolio

 

Earnings

Profit totaled $145 million, or $0.38 per share, comapred to $213 million, or $0.56 per share in the same quarter last year. Excluding items, Apache Corp. reported adjusted earnings of $124 million or $0.32 per share for the period. Analysts had expected the company to earn $0.30 per share, according to figures compiled by Thomson Reuters. Revenue fell 7.4% to $1.74 billion from $1.88 billion last year.  

Apache Corp NYSE: $APA

Reaction After hours 40.90 −0.16 (-0.39%)

“Internationally, production was in line with our guidance, and our exposure to Brent oil pricing contributed to high margins, high cash returns and strong free cash flow. The first quarter was very good from an execution and cost-control standpoint, and we are seeing continued momentum into the second quarter,” said CEO Christmann.

Highlights

  • Reduced average Alpine High well costs by 20 percent from 2017 average;
  • Announced oil discovery at Garten prospect in U.K. North Sea with reserve potential in excess of 10 million barrels of oil (APA has a 100-percent working interest)
  • Raising U.S. production guidance range to 250,000 to 258,000 BOE per day, from 245,000 to 255,000 BOE per day.

Production

  • Reported first-quarter production of 440,000 barrels of oil equivalent (BOE) per day and adjusted production of 367,000 BOE per day, which excludes Egypt noncontrolling interest and tax barrels;
  • Achieved U.S. production of 232,000 BOE per day, exceeding guidance by 9,000 BOE per day;
  • Delivered record Permian Basin production of 183,000 BOE per day, with oil up 14 percent and total production up 24 percent year over year;
  • Raising U.S. production guidance range to 250,000 to 258,000 BOE per day, from 245,000 to 255,000 BOE per day.

Source: Apache

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