Doug Leggate of Bank of America asks about 1Q16 operating cash and free cash flow in Egypt and North Sea operations. $APA CFO Stephen Riney replied that the company doesn't give this type of information down to the asset level. He stated that both of those asset areas this year will be cash flow generators for the company.
Ahead of its quarterly earnings announcement, scheduled for February 22, 2017, oil exploration company $APA said it expects adj. international production to be in the range of 138,000 to 140,000 BOE per day in 4Q17. In the US, production is currently estimated to be at the high end of the company's guidance range of 218,000 to 224,000 BOE per day.
$APA expects portfolio flexibility will help it overcome the impact of potential price pressures in future. In next year’s activities, priority will be given to identifying areas where the capital program yields returns. Overall spending is seen declining next year, when the allocation of portfolio will be similar to that in 2017.
$APA said it is benefiting from the strategic developmental initiatives implemented in the Midland and Delaware basins over the past years. The company expects the capital efficiency gains to continue in the coming quarters, especially in Alpine High. Another positive factor is the ongoing cost cutting initiatives.
$APA reported overall production volumes of 448,235 BOE per day in 3Q17, down 14% compared to last year. Oil production dropped 12% annually, and natural gas production decreased by 15%. Adjusted for special items, total production dipped 7%. During the quarter, total average oil prices rose to $49.34 per barrel from $44.35 per barrel in 3Q16.
$APA continued its recovery from the long spell of losses, but at a slower pace. The oil explorer posted earnings of $0.16 per share in 3Q17, compared to a $1.6 per share loss last year. The improvement was supported by a 10% growth in revenues to $1.6Bil, though operations were affected by hurricane. Among peers, $DVN reported EPS of $0.43 in 3Q.
Energy exploration company $APA has completed the divestiture of its subsidiary Apache Canada to Paramount Resources. The deal consists of properties located principally in the provinces of Alberta and British Columbia. The company also finalized the sale of its Provost assets in Alberta to an undisclosed entity, marking a total exit from Canada.
$APA, an oil exploration company, completed sale of its subsidiary Apache Canada Ltd. to Paramount Resources Ltd., which includes properties in Alberta and British Columbia provinces. It also sold its Provost assets in Alberta to an undisclosed firm. Together with June 30 sale of assets at Midale and House Mountain, it has exited from Canada.
$APA's total production bottomed out in 2Q17 and the company has now shifted to a growth trajectory. It expects continued production volume increases at Alpine High and in the Midland Basin, as well as from international regions during the second half of 2017.
For 2Q17, $APA delivered production of 460 MBOE per day, down 14% from last year. The company updated its 2017 production guidance to reflect its exit from Canada and now expects production of 457-471 MBOE/D, compared to the previous forecast of 485-503 MBOE/D. The company said its $3.1Bil 2017 budget is not impacted by the Canada exit.
$APA expects to complete its previously announced exit from Canada in August. In addition to the total $713MM sales price, the Canadian exit will result in several important financial benefits, including a reduction of approx. $800MM in asset retirement obligations from the balance sheet, said the company.
$APA swung back to profit in 2Q17 as flat revenue was more than offset by lower expenses. Net earnings for 2Q17 were $572MM, or $1.50 per share, compared to net loss of $244MM, or $0.65 per share, a year ago. Excluding items, adjusted loss was $0.21 per share vs. $0.26 per share in the year-ago period. Operating expenses were down 17%.
$APA said it would complete an exit from Canada upon the closing of three recent transactions. Upon completion of its exit, $APA will realize a significant reduction in asset retirement obligations and annual overhead costs. Total company revenues per BOE, cash margins per BOE, and EPS will also improve with the completion of these transactions.
$APA said it would complete an exit from Canada upon the closing of three recent transactions. Aggregate proceeds from the three transactions are approx. US$713MM (C$ 927MM). $APA plans to use these proceeds to fund a portion of its 2017-2018 capital program, to reduce debt, or to improve overall liquidity.
