Apache misses by $0.20, misses on revs; Co lowers overall 2017 reported production guidance (47.91)
- Reports Q2 (Jun) loss of $0.21 per share, excluding non-recurring items, $0.20 worse than the Capital IQ Consensus of ($0.01); revenues rose 0.1% year/year to $1.38 bln vs the $1.41 bln Capital IQ Consensus
- During the second quarter, Apache operated an average of 35 rigs and drilled and completed 66 gross-operated wells worldwide
- Delivered second-quarter production of 460,000 barrels of oil equivalent (Boe) per day and adjusted production of 388,000 Boe per day, which excludes Egypt noncontrolling interest and tax barrels
- Announced the strategic exit from Canada, which streamlines the portfolio, increases leverage to the Permian and positively impacts financial metrics; revised 2017 guidance accordingly
- Co is demonstrated strong cost discipline despite inflationary pressures; capital and lease operating expenses tracking at or below guidance for the full year
Outlook:
- To reflect the impact of the company's exit from Canada, Apache has updated its 2017 production guidance to account for divested volumes
- Co lowers overall reported production guidance for 2017 to 457-471 MBOE/D, down from 485-503 MBOE/D.
- Guidance for certain expenses, including gathering and transportation costs and G&A expenses, has also been reduced
- With regards to capital, Apache's $3.1 billion 2017 budget is not impacted by the Canada exit since most of the capital allocated to Canada this year will have been spent by the time all transactions have closed
Looking into 2018...
- "As we look to 2018, we are well prepared to manage a capital program commensurate with the prevailing price environment without stressing the balance sheet or diluting our shareholders. We are keenly focused on returns and have great confidence in the economics of our long-term investments and opportunity set. We have structured our business to adapt and thrive in a lower-for-longer price environment. Our focus on costs, maintaining a strong balance sheet and streamlining our business have positioned us to deliver returns-focused organic growth for many years to come," s