Apache Reports Record Second-Quarter Earnings of $587 Million
Apache Corporation (NYSE, Nasdaq: APA) reported that higher oil and gas prices and record production combined to generate record second-quarter 2005 earnings of $587 million or $1.76 per diluted common share, up from $382 million or $1.16 per diluted common share in the prior-year period. It was the company's sixth consecutive quarter of record earnings.
Cash from operations before changes in operating assets and liabilities* totaled a record $1.1 billion in the second quarter, up 53 percent from $721 million in the year-earlier period.
For the first half of 2005, Apache reported earnings of $1.15 billion, or $3.44 per share, up 58 percent from the first half of 2004, and cash from operations of $2.1 billion, up from $1.5 billion in the year-earlier period. First-half oil and gas revenues climbed $1 billion, or 42 percent, to $3.4 billion.
Production averaged 470,000 barrels of oil equivalent (boe) per day in the second quarter, 6 percent ahead of last year's second-quarter production. For the first six months, Apache's production was up 7 percent to 466,000 boe per day.
"A number of factors -- including our active drilling program and development projects in Canada, Egypt, the North Sea and Australia -- point to continued production growth in the second half of 2005," said G. Steven Farris, Apache's president, chief executive officer and chief operating officer.
Apache completed 712 wells in the first half, up from 505 wells in the first half of 2004.
Apache's results reflected continuing strong oil and gas prices. Apache received $48.55 per barrel of oil in the second quarter, up 47 percent from the prior-year period; $30.12 per barrel of natural gas liquids, up 31 percent; and $5.71 per thousand cubic feet of gas, up 18 percent.
Recent operational highlights include: * In Canada, gas production rose to 364 million cubic feet (MMcf) per day in the first half, up 13 percent from the first half of 2004. Apache has drilled 157 wells on Canadian acreage acquired last year in a farm-in from ExxonMobil, of which 26 are on production, two were dry and others are being brought on production as processing and transportation infrastructure becomes available. During the second quarter, Apache and ExxonMobil expanded their agreement, which now covers more than 1 million acres. * Apache initiated production from the Qasr field development in Egypt on July 20. As additional facilities are commissioned, the company expects to ramp up production at Qasr, reaching 150 MMcf of gas per day by the end of the third quarter of 2005. * In Australia, the Rose-4 gas well was brought on production during the second quarter and currently is producing 61 MMcf of gas and 1,700 barrels of condensate per day. Apache expects to commence production from the John Brookes development by the end of the third quarter. * Oil production from the North Sea increased to 63,600 barrels per day during the first half, up 39 percent from the prior-year period.
Operates 3 Offshore Rigs
- Ancala Acquires Apache's Two North Sea Gas Pipeline Assets (Nov 20)
- Apache Raises North America Output Forecast, Swings To Profit (May 04)
- Oil Producer Apache Posts Smaller-Than-Expected Loss (Nov 03)