By Tess Stynes 
 

Apache Corp. reported an adjusted first-quarter loss that wasn't as wide as analysts had feared, sending the oil-and-gas producer's shares higher.

The Houston company's shares rose 7.8% to $54.62 in recent trading as Apache also increased its production forecast.

Apache raised its 2016 outlook for North American onshore production to 268,000 to 278,000 barrels of oil-equivalent a day, up from initial guidance of 263,000 to 273,000 barrels of oil-equivalent a day.

Apache also increased its overall 2016 production guidance, excluding Egypt, by 5,000 barrels of oil-equivalent a day to a total of 438,000 barrels of oil-equivalent a day to 458,000 barrels of oil-equivalent a day.

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.

Chief Executive John Christmann IV said in prepared remarks Thursday that despite a continued decline in Apache's drilling activities, the company delivered strong production results in its North America onshore business.

The company's "focus on costs continues to yield significant results." Mr. Christman stated. "In our North American onshore key plays, drilling and completion costs are now down approximately 45% from 2014 levels."

Over all, Apache reported a loss of $489 million, or $1.29 a share. The latest period included ceiling test write-downs of $325 million. Excluding such items, the company's per-share loss was 40 cents.

Analysts polled by Thomson Reuters had expected a loss of 89 cents a share.

The company also affirmed its 2016 capital spending budget.

 

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

 

(END) Dow Jones Newswires

May 05, 2016 10:39 ET (14:39 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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