U.S. energy firm Apache Corp. (APA - Free Report) reported a fourth-quarter loss per share – excluding one-time items – of 6 cents, contrary to the Zacks Consensus Estimate for a profit of 6. The underperformance stems from a dip in output due to a conservative capital budget.
However, the bottom line improved from the year-ago adjusted loss of 38 cents amid cost savings and higher realizations.
Revenues of $1,451 million were below the Zacks Consensus Estimate of $1,489 million and the fourth-quarter 2015 sales of $1,482 million.
Operational Performance
The production of oil and natural gas (excluding divested assets and non-controlling interests) averaged 420,846 oil-equivalent barrels per day (BOE/d) (64% liquids), down 14% from last year. Apache’s production for oil and natural gas liquids (NGLs) was 271,074 barrels per day (Bbl/d), while natural gas output came in at 898.6 million cubic feet per day (MMcf/d).
The average realized crude oil price during the fourth quarter was $47.39 per barrel, representing an increase of 19% from the year-ago realization of $39.79. Moreover, the average realized natural gas price during the Dec quarter of 2016 was $2.85 per thousand cubic feet (Mcf), up 8% from the year-ago period.
Balance Sheet, Capital Spending & Lease Operating Expenses
As of Dec 31, 2016, Apache had approximately $1,377 million in cash and cash equivalents. The Zacks Rank #3 (Hold) company had a long-term debt of $8,544 million, representing a debt-to-capitalization ratio of 57.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
During Oct-Dec period, Apache’s exploration and development investments totaled $112 million, 85% lower than the $735 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) – aligned its spending plans with the low oil price environment.
Apache’s fourth quarter lease operating expenses totaled $375 million, down 18% from the year-ago quarter. Total costs and expenses fell 77% from the fourth quarter of 2015 to $1,565 million.
Guidance:
After following a disciplined capital allocation program over the past 2 years, Apache is now looking to shift its strategic objective. With returns-focused growth in mind, Apache announced a 2017 capital budget of $3.1 billion, representing a 60% increase over its 2016 spend. The company also aims to grow production by approximately 10% in the next year.
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U.S. energy firm Apache Corp. (APA - Free Report) reported a fourth-quarter loss per share – excluding one-time items – of 6 cents, contrary to the Zacks Consensus Estimate for a profit of 6. The underperformance stems from a dip in output due to a conservative capital budget.
However, the bottom line improved from the year-ago adjusted loss of 38 cents amid cost savings and higher realizations.
Revenues of $1,451 million were below the Zacks Consensus Estimate of $1,489 million and the fourth-quarter 2015 sales of $1,482 million.
Operational Performance
The production of oil and natural gas (excluding divested assets and non-controlling interests) averaged 420,846 oil-equivalent barrels per day (BOE/d) (64% liquids), down 14% from last year. Apache’s production for oil and natural gas liquids (NGLs) was 271,074 barrels per day (Bbl/d), while natural gas output came in at 898.6 million cubic feet per day (MMcf/d).
The average realized crude oil price during the fourth quarter was $47.39 per barrel, representing an increase of 19% from the year-ago realization of $39.79. Moreover, the average realized natural gas price during the Dec quarter of 2016 was $2.85 per thousand cubic feet (Mcf), up 8% from the year-ago period.
Balance Sheet, Capital Spending & Lease Operating Expenses
As of Dec 31, 2016, Apache had approximately $1,377 million in cash and cash equivalents. The Zacks Rank #3 (Hold) company had a long-term debt of $8,544 million, representing a debt-to-capitalization ratio of 57.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
During Oct-Dec period, Apache’s exploration and development investments totaled $112 million, 85% lower than the $735 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) – aligned its spending plans with the low oil price environment.
Apache’s fourth quarter lease operating expenses totaled $375 million, down 18% from the year-ago quarter. Total costs and expenses fell 77% from the fourth quarter of 2015 to $1,565 million.
Guidance:
After following a disciplined capital allocation program over the past 2 years, Apache is now looking to shift its strategic objective. With returns-focused growth in mind, Apache announced a 2017 capital budget of $3.1 billion, representing a 60% increase over its 2016 spend. The company also aims to grow production by approximately 10% in the next year.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>
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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