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Apache Corp Says Severe Weather Hurt US Output

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Apache Corp Says Severe Weather Hurt US Output

Reuters

Jan 16 (Reuters) - Oil and gas producer Apache Corp said severe winter hurt output at its operations in Oklahoma, Texas and New Mexico in the fourth quarter.

Apache did not provide an overall output estimate for the quarter.

Mizuho Securities estimated the company's output at 655,000 barrels of oil equivalent per day (boepd) for the three months ended Dec. 31.

Apache produced 784,000 boepd in the third quarter.

The company halted some operations because of storms in late November and early December. Widespread power cuts and icy roads slowed down the resumption of production.

Energen Corp, Pioneer Natural Resources Co and its unit Pioneer Southwest Energy Partners have also said severe weather in the United States hurt production.

Pipeline outages and downtime caused by severe weather offset an increase in output in the Permian Region, which spans New Mexico and Texas, Apache said.

The company estimated that Permian production increased by about 1,000 barrels of oil equivalent per day (boepd) during the fourth quarter. Output there had shot up by about 8,400 boepd during the third quarter.

Apache said output slightly decreased in the Central Region, comprising Texas Panhandle and Western Oklahoma, but did not give an estimate. Fewer rigs drilling in the region also weighed on output.

Mizuho Analysts said they were modeling a 4 percent production growth for the region.

Apache said asset sales also hurt fourth-quarter output.

The timing of the company's stake sale in Egypt was largely responsible for the 6 percent drop in Mizuho's estimate for Apache's fourth-quarter production.

Apache sold a 33 percent stake in its Egypt oil and gas business to Sinopec International Petroleum Exploration and Production Corp for $3.1 billion.

Besides, the deal in Egypt, Apache expects the divestment of its Gulf of Mexico shelf operations and the sale of some Canadian assets to reduce quarterly production by 134,000 boepd from the third quarter.

Apache shares were up 1.4 percent at $85.65 on the New York Stock Exchange on Thursday afternoon.

Copyright 2014 Thomson Reuters. Click for Restrictions.

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