Apache Adjusted Loss Not as Wide as Feared, 2016 Production Outlook Boosted
May 05 2016 - 10:54AM
Dow Jones News
By Tess Stynes
Apache Corp. reported an adjusted first-quarter loss that wasn't
as wide as analysts had feared, sending the oil-and-gas producer's
shares higher.
The Houston company's shares rose 7.8% to $54.62 in recent
trading as Apache also increased its production forecast.
Apache raised its 2016 outlook for North American onshore
production to 268,000 to 278,000 barrels of oil-equivalent a day,
up from initial guidance of 263,000 to 273,000 barrels of
oil-equivalent a day.
Apache also increased its overall 2016 production guidance,
excluding Egypt, by 5,000 barrels of oil-equivalent a day to a
total of 438,000 barrels of oil-equivalent a day to 458,000 barrels
of oil-equivalent a day.
Like many other U.S. energy companies hurt by falling
commodities prices, Apache has cut back on drilling rigs and has
been delaying well completions.
Chief Executive John Christmann IV said in prepared remarks
Thursday that despite a continued decline in Apache's drilling
activities, the company delivered strong production results in its
North America onshore business.
The company's "focus on costs continues to yield significant
results." Mr. Christman stated. "In our North American onshore key
plays, drilling and completion costs are now down approximately 45%
from 2014 levels."
Over all, Apache reported a loss of $489 million, or $1.29 a
share. The latest period included ceiling test write-downs of $325
million. Excluding such items, the company's per-share loss was 40
cents.
Analysts polled by Thomson Reuters had expected a loss of 89
cents a share.
The company also affirmed its 2016 capital spending budget.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
May 05, 2016 10:39 ET (14:39 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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