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Apache (APA) Posts Q2 Loss, Beats Revenue on Robust Volumes

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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.


Apache Corporation (APA - Free Report) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompany

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.

APACHE CORP Price, Consensus and EPS Surprise

APACHE CORP Price, Consensus and EPS Surprise | APACHE CORP Quote


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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