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

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Apache Corp (NYSE: $APA) Reported Earnings After Close Wednesday

$0.31 Beat $0.24 EPS and $1.765 billion Missed $1.76 billion forecast in revenue 

Earnings

Apache (APA) reported fourth-quarter earnings with a loss of $381 million or $1.00 per diluted common share. When adjusted for certain items that impact the comparability of results, including primarily the impact of asset impairments in the North Sea, Gulf of Mexico, Anadarko Basin, and Egypt, Apache’s fourth-quarter income totaled $119 million, or $0.31 per share. Net cash provided by operating activities in the fourth quarter was $1 billion, and adjusted EBITDAX was $1.1 billion. Revenues were $1.765 Billion for the quarter, The results were ahead of estimates.  

For the full-year 2018, Apache reported income of $40 million, or $0.11 per diluted common share. On an adjusted basis, Apache’s 2018 earnings totaled $679 million, or $1.77 per share. Net cash provided by operating activities was $3.8 billion, and adjusted EBITDAX was $4.9 billion in 2018.

Apache Corporation NYSE: $APA

Market Reaction After hours 38.72 +0.89 (+2.35%)

Highlights

“In the Permian, strong execution and well performance drove an 18 percent increase in oil production, and we achieved an important strategic goal with the formation of Altus Midstream Company, which will fund the growing infrastructure needs of Alpine High. On the international front, we increased production in the North Sea to its highest level in two years, and we laid a foundation for long-term potential production growth with the addition of significant acreage and progress on our extensive 3D-seismic program in Egypt.”

Fourth-quarter 2018 highlights

  • • Delivered reported production of 482,000 barrels of oil equivalent (BOE) per day; adjusted production, which excludes Egypt noncontrolling interest and tax barrels, was 421,000 BOE per day, in-line with guidance;
  • • Achieved U.S. production of 283,000 BOE per day; Permian oil production was 99,000 barrels per day, exceeding guidance;
  • • Posted international reported production of 199,000 BOE per day; adjusted production of 138,000 BOE per day driven by North Sea which achieved its highest quarterly production rate in two years; and
  • • Reported $1 billion in net cash from operating activities and adjusted EBITDAX of $1.1 billion.

2019 outlook

  • • Established 2019 upstream capital budget of $2.4 billion, a decrease of 22 percent from 2018;
  • • Updating annual adjusted production guidance to 425,000 to 440,000 BOE per day, from a previous range of 410,000 to 440,000 BOE per day; and
  • • Reiterating fourth-quarter 2019 exit rate guidance of 6 to 10 percent production growth worldwide, 12 to 16 percent in the United States (U.S.), and 5 percent for Permian oil from fourth-quarter 2018 levels

 

Apache Corp Q3 Earnings Recap

$0.63 Beat $0.43 EPS and $1.98 billion Beat $1.91 billion forecast in revenue 

Earnings

Apache (APA) reported third-quarter earnings with net income of 21 cents per share. Earnings, adjusted to extinguish debt and for non-recurring costs was 63 cents per share ahead of consensus expectations of 43 cents per share. Revenue was $1.98 billion also topping  forecasts of $1.91 billion. 

Apache Corporation NYSE: $APA

Market Reaction After hours $34.02 +0.46 (1.37%)

Highlights

  • Third-quarter production of 476,000 barrels of oil equivalent (BOE) per day.
  • Adjusted production, which excludes Egypt noncontrolling interest and tax barrels and 2017 divestitures, was 401,000 BOE per day, up 13 percent over third-quarter 2017
  • Achieved U.S. production of 272,000 BOE per day and record Permian Basin production of 222,000 BOE per day, up 31 percent and 38 percent over third-quarter 2017, respectively;
  • Delivered strong cash flow from operations of $1 billion, with nearly 70 percent of reported oil production receiving Brent or Gulf Coast-linked pricing; 
  • Expecting strong fourth-quarter adjusted production volume growth of 20,000 BOE per day, approximately half of which will come from oil; raising full-year 2018 U.S. production guidance to 262,000 BOE per day
  • Altus Midstream Company transaction to close in November 2018, which is expected to fund fourth quarter 2018 and future Alpine High midstream expenditures;
  • Anticipate 2019 production at the high-end of previously announced guidance of 410,000 to 440,000 BOE per day on an annual upstream capital program of $3 billion; and 
  • Resumed share buyback program during the third quarter; announced additional share repurchase authorization of 40 million shares.

Apache Q3 Global Production

 

Source: Apache

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