By Tess Stynes 
 

Apache Corp. (APA) swung to a fourth-quarter loss as the oil-and-gas producer took a big write-down related to declining commodities prices and said it plans to put the brakes on some drilling activities until service costs decline and prices recover.

Chief Executive John J. Christmann IV said a substantial decline in oil and gas prices since the company issued its update on its North American business in late November prompted Apache to act quickly to cut activity levels and reset its well cost structure.

For the latest period, Apache noted average selling prices for oil dropped 30% globally. In its North American onshore business, the company said its average selling prices for oil slid 26%.

Mr. Christmann said Apache has reduced its rig count to an estimated 27 rigs by the end of this month from an average of 91 in the third quarter. Apache reduced its hydraulic fracturing crews by roughly 50% during that period and also is delaying some well completions until service costs decrease materially.

For 2015, the company is planning to run a streamlined capital program that focuses on efficiency improvements, downspacing and other strategic tests to further delineate its inventory of energy assets, he said.

"While we are fortunate to have a substantial inventory of projects that can make economics at these oil prices, we believe it more prudent to curtail our activity until costs are lower and prices recover," he said.

Overall, Apache reported a loss of $4.81 billion or $12.78 a share, compared with a year-earlier profit of $174 million, or 43 cents a share. Excluding asset write-downs and other items, earnings were $1.07. Revenue decreased 14% to $2.95 billion.

Analysts polled by Thomson Reuters expected per-share profit of 76 cents and revenue of $3.09 billion.

Apache, under pressure from activist investor Jana Partners LLC, had been considering a possible sale or spinoff of its international operations to focus on shale drilling in the U.S.

During December, Apache agreed to sell its stakes in two international liquefied-natural-gas projects to Woodside Petroleum Ltd. for a combined $2.75 billion amid concerns about commodities prices.

On Thursday, Apache said it announced the sale of $7 billion of assets globally during 2014, while also adding $1.2 billion of assets in North America.

Write to Tess Stynes at tess.stynes@wsj.com

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