By Tess Stynes
Apache Corp. swung to a first-quarter loss on impacts from low
crude prices that contributed to a sharp decline in revenue and a
big write-down.
The company also has been divesting itself of international
assets as part of its effort to refocus on U.S. shale drilling.
Last month, 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 recently 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 in prepared remarks
Thursday that Apache's drilling and completion costs across its key
plays in North America onshore are down between 20% and 40% from
November.
The company's North American onshore production exceeded
Apache's guidance despite the decrease in well completions and
adverse impacts of severe winter weather in the Permian and
Anadarko basins, Mr. Christmann said. In its international
operations, production in both Egypt and the North Sea is tracking
ahead of initial expectations, he added.
Overall, Apache reported a loss of $4.65 billion, or $12.34 a
share, compared with a year-earlier profit of $236 million, or 60
cents a share, a year earlier. The latest period included a
ceiling-test write-down of $4.7 billion related to low commodities
prices. Excluding such items, the per-share loss was 37 cents.
Revenue slid 50% to $1.82 billion.
Analysts polled by Thomson Reuters expected per-share loss of 57
cents and revenue of $1.81 billion.
For the latest period, Apache noted average selling prices for
oil skidded 53% globally.
Apache also affirmed its 2015 onshore North American production
and capital-spending forecasts.
Write to Tess Stynes at tess.stynes@wsj.com
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