Apache's 4Q Profit Misses Estimates As Output Down Sharply

Reuters

Feb 13 (Reuters) - U.S. oil and gas company Apache Corp on Thursday reported a bigger-than-expected decline in fourth-quarter profit as its output fell sharply on asset sales and a frigid winter in the United States.

Apache warned of weak fourth-quarter output in January, saying that severe winter weather in November had disrupted production at its operations in Oklahoma, Texas and New Mexico.

The company said its net profit fell to $174 million, or 43 cents per share per share in the fourth quarter, from $649 million, or $1.64 per share, a year earlier.

Adjusted earnings were $1.57 per share. Revenue fell 19 percent to $3.57 billion.

Analysts on average were expecting a profit of $1.79, on revenue of $3.67 billion, according to Thomson Reuters I/B/E/S.

Apache said on Wednesday that it agreed to sell all of its operations in Argentina to state-controlled energy company YPF for $800 million. The sale is part of a company plan to cut its debt and focus drilling in higher growth areas, like shale formations in the Permian Basin in West Texas.

Production from Apache's operations in the Permian Basin and Central U.S. regions accounted for a third of the company's global output in the fourth quarter ended Dec. 31.

Total output averaged 688,000 barrels oil equivalent per day (boepd) in the quarter, much lower than last year's 800,005 boepd.


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