By Angela Chen
Apache Corp. on Thursday raised its full-year production
guidance as revenue fell less than expected in the June quarter,
though results were still hurt by a big write-down on low
commodities prices.
The Houston oil company had been divesting itself of
international assets as part of an effort to refocus on U.S. shale
drilling. Earlier, Apache agreed to sell its Australian unit for
$2.1 billion to a group of private-equity investors. The sale
marked Apache's exit from its Australian exploration-and-production
business.
The company also completed the sale of its stakes in two
liquefied natural gas projects in Canada and Australia to Woodside
Petroleum Ltd. for $2.75 billion.
Like many other U.S. energy companies, Apache has cut back on
drilling rigs and has been delaying well completions.
Chief Executive John J. Christmann IV said the company is
raising its full-year production guidance because production
exceeded expectations in the first half of the year.
Apache now expects production of 305,000 to 308,000 barrels of
oil equivalent per day in North America, from the original range of
about 302,000 per day. It also lifted the bottom of its
capital-budget guidance range, which is now $3.6 billion to $3.9
billion, compared with $3.4 billion to $3.9 billion.
The original capital budget had seen a 60% reduction from 2014
levels.
Overall, Apache reported a loss of $5.6 billion, or $14.83 a
share, compared with a year-earlier profit of $505 million, or
$1.31 a share, a year earlier. The latest period included a
write-down of $3.7 billion related to low commodities prices and
$1.9 billion of other items.
Excluding such items, the company posted per-share earnings of
22 cents, compared with earnings of $1.49 a year earlier.
Revenue fell to $1.98 billion from $3.29 billion.
Analysts polled by Thomson Reuters expected a per-share loss of
26 cents and revenue of $1.86 billion.
Shares, inactive premarket, have fallen 29% this year through
Wednesday's close.
Write to Angela Chen at angela.chen@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires