Apache Loss Widens Sharply
February 25 2016 - 10:00AM
Dow Jones News
Apache Corp. said its fourth-quarter loss widened sharply as the
oil-and-gas producer was hit by a big write-down and lower revenue
tied to slumping commodities prices.
The Houston company also reined in capital spending plans for
2016 to $1.4 billion to $1.8 billion and expects to reduce
production by 7% to 11%, excluding Egypt. Last year, Apache's
capital spending totaled $4.7 billion, a reduction of more than 60%
from 2014.
Chief Executive John Christmann IV said in prepared remarks that
Apache plans to adjust its capital spending plans this year "to
align with actual commodity prices and resulting cash flow."
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.
For the latest quarter, Apache said its average North American
onshore drilled and completed-well costs declined 35% from a year
earlier.
Apache has been in a yearslong process of selling off many
international oil and gas fields while boosting its drilling and
production in North America. A portion of the proceeds from asset
sales last year were used to improve Apache's balance sheet.
Apache said it cut its long-term debt by 22% to $8.78 billion in
2015 and that it expects to end 2016 with $1.5 billion of cash, the
same as last year.
"In 2016, we plan to be cash flow neutral after dividends and
believe this can be achieved at $35 oil with minimal noncore,
nonproducing asset sales," Chief Executive John Christmann IV said
in prepared remarks. "Our target is for net debt at the end of 2016
to be unchanged or lower than it was at the end of 2015."
Over all, Apache reported a loss of $7.2 billion, or $19.07 a
share, compared with a year-earlier loss of $4.81 billion, or
$12.78 a share. Excluding asset write-downs and other items,
adjusted per-share loss was 6 cents, compared with per-share
adjusted earnings of 88 cents a year earlier. Revenue slumped 53%
to $1.26 billion.
Analysts polled by Thomson Reuters expected adjusted per-share
loss of 47 cents and revenue of $1.42 billion.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
February 25, 2016 09:45 ET (14:45 GMT)
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