U.S. energy firm Apache Corp. (APA - Free Report) reported a second-quarter loss per share – excluding one-time items – of 26 cents, wider than the Zacks Consensus Estimate for a loss of 21 cents and a far cry from the year-ago adjusted profit of 47 cents. The underperformance stems from low commodity prices that more than offset cost savings.
Revenues of $1,382 million were down 38% from the year-ago quarter but came above the Zacks Consensus Estimate of $1,313 million amid robust production from Apache’s key North American onshore plays despite a significant reduction in capital.
Operational Performance
The production of oil and natural gas (excluding divested assets and non-controlling interests) averaged 460,774 oil-equivalent barrels per day (BOE/d) (65% liquids), down 6% from last year. Apache’s production for oil and natural gas liquids (NGLs) was 299,758 barrels per day (Bbl/d), while natural gas output came in at 966.1 million cubic feet per day (MMcf/d).
The average realized crude oil price during the second quarter was $43.14 per barrel, representing a decrease of 26% from the year-ago realization of $58.06. Moreover, the average realized natural gas price during the June quarter of 2016 was $2.04 per thousand cubic feet (Mcf), also down 26% from the year-ago period.
Balance Sheet, Capital Spending & Lease Operating Expenses
As of Jun 30, 2016, Apache had approximately $1,201 million in cash and cash equivalents. The Zacks Rank #2 (Buy) company had a long-term debt of $8,719 million, representing a debt-to-capitalization ratio of 55.0%.
During Apr-Jun period, Apache’s exploration and development investments totaled $423 million, 56% lower than the $969 million incurred a year ago. The company – like many other oil and gas players including ConocoPhillips (COP - Free Report) , Chesapeake Energy Corp. (CHK - Free Report) and Marathon Oil Corp. (MRO - Free Report) – has adjusted its spending plans considerably amid diving crude prices.
Apache’s second quarter lease operating expenses totaled $359 million, down 23% from $467 million in the year-ago quarter.
Guidance
Apache was able to lower its capital spending by 60% in 2015 to $4.2 billion, while this year it plans to spend even less - at the high end of its guidance range of $1.4 to $1.8 billion.
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U.S. energy firm Apache Corp. (APA - Free Report) reported a second-quarter loss per share – excluding one-time items – of 26 cents, wider than the Zacks Consensus Estimate for a loss of 21 cents and a far cry from the year-ago adjusted profit of 47 cents. The underperformance stems from low commodity prices that more than offset cost savings.
Revenues of $1,382 million were down 38% from the year-ago quarter but came above the Zacks Consensus Estimate of $1,313 million amid robust production from Apache’s key North American onshore plays despite a significant reduction in capital.
Operational Performance
The production of oil and natural gas (excluding divested assets and non-controlling interests) averaged 460,774 oil-equivalent barrels per day (BOE/d) (65% liquids), down 6% from last year. Apache’s production for oil and natural gas liquids (NGLs) was 299,758 barrels per day (Bbl/d), while natural gas output came in at 966.1 million cubic feet per day (MMcf/d).
The average realized crude oil price during the second quarter was $43.14 per barrel, representing a decrease of 26% from the year-ago realization of $58.06. Moreover, the average realized natural gas price during the June quarter of 2016 was $2.04 per thousand cubic feet (Mcf), also down 26% from the year-ago period.
Balance Sheet, Capital Spending & Lease Operating Expenses
As of Jun 30, 2016, Apache had approximately $1,201 million in cash and cash equivalents. The Zacks Rank #2 (Buy) company had a long-term debt of $8,719 million, representing a debt-to-capitalization ratio of 55.0%.
During Apr-Jun period, Apache’s exploration and development investments totaled $423 million, 56% lower than the $969 million incurred a year ago. The company – like many other oil and gas players including ConocoPhillips (COP - Free Report) , Chesapeake Energy Corp. (CHK - Free Report) and Marathon Oil Corp. (MRO - Free Report) – has adjusted its spending plans considerably amid diving crude prices.
Apache’s second quarter lease operating expenses totaled $359 million, down 23% from $467 million in the year-ago quarter.
Guidance
Apache was able to lower its capital spending by 60% in 2015 to $4.2 billion, while this year it plans to spend even less - at the high end of its guidance range of $1.4 to $1.8 billion.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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