APA Apache Corporation

By Tess Stynes 

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's shares, down 45% in the past year, declined 3.5% to $37.25 in recent trading. Apache's adjusted per-share loss, which excludes one-time items, wasn't as wide as analysts had feared, but revenue missed expectations.

Apache 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 10:59 ET (15:59 GMT)

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