Apache Deploys Additional Capital As Oil Prices Improve
Aug 4 (Reuters) - Oil and gas producer Apache Corp said on Thursday it had started deploying additional capital and expected spending this year to be at the higher end of its forecast range, given "modest signs of improvement" in oil prices.
Apache said it expected to spend at the high end of its 2016 capital forecast of $1.4 billion-$1.8 billion.
U.S. benchmark oil prices have shot up nearly 58 percent since touching a 12 year-low of $26 in February, prompting oil producers to put rigs back to work.
Apache said it recently added a rig in the Midland Basin in Texas and was maintaining operations on two rigs in the North Sea, while "accelerating strategic testing initiatives".
The company spoke of a "better investment environment" in May, signaling that it may ramp up spending.
Chesapeake Energy Corp also said on Thursday it expected capital spending this year to be at the higher end of its forecast range.
Apache's total oil and gas output averaged 535,456 barrels of oil equivalent per day (boed) in the second quarter, down from 579,827 boed in the year-earlier period.
Apache's total revenue slumped nearly 39 percent, outpacing a near-32 percent fall in total costs and expenses.
The Houston-based company's net loss narrowed to $244 million, or 65 cents per share, in the quarter ended June 30, from $860 million, or $2.28 per share, a year earlier.
The company's adjusted loss was 26 cents per share under a new accounting method it adopted during the quarter. Based on the previous method, Apache earned 5 cents per share.
Analysts on average were expecting a loss of 15 cents per share, according to Thomson Reuters I/B/E/S.
Credit Suisse, Wells Fargo and Cowen & Co said Apache's adjusted profit of 5 cents per share was comparable to their estimates of a loss of 16-24 cents per share.
"(Apache) delivered a Q2 EPS, cash flow and production beat," analysts at Simmons & Co wrote in a note. "A bit of noise this quarter around the EPS given the change in accounting methods."
Apache's revenue of $1.38 billion was marginally above analysts' estimate of $1.37 billion.
(Reporting by Swetha Gopinath in Bengaluru; Editing by Martina D'Couto)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- USA Driving Activity to Increase to All-Time Highs
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- I Squared Eyes Full Ownership of Europe Gas Storage Firm
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension