Apache has reported record worldwide oil and natural gas production of 587,400 barrels of oil equivalent (boe) per day in the second quarter, up 7.1 percent from the first quarter and 6.5 percent from the prior-year period.
Apache reported net income of $443 million, or $1.31 per diluted common share, compared with $1.4 billion, or $4.28 per share, in the prior-year period. Second-quarter cash from operations before changes in operating assets and liabilities* totaled $1.26 billion, compared with $2.3 billion in the prior-year period.
Apache's second-quarter adjusted earnings,* which exclude certain items that impact the comparability of operating results, totaled $474 million, or $1.41 per share, compared to adjusted earnings of $1.44 billion, or $4.28 per share, in the prior-year period.
"The strength of Apache's geological and geographical diversity, along with our balanced product mix, fueled our second-quarter results," said G. Steven Farris, chairman and chief executive officer.
"Initial production from development projects in the Gulf of Mexico and the Western Desert of Egypt, combined with rebounding oil prices, more than offset the continuing deterioration of North American natural gas prices during the quarter," he said. "With continued drilling successes in Egypt, the Gulf and the North Sea, Apache has strong momentum going into the second half of the year."
Oil production comprised 48 percent of Apache's worldwide output, but 72 percent of oil and gas revenues. The company's oil and gas revenue per boe increased 19 percent from the first quarter. Apache received an average of $58.15 per barrel of oil, up 37 percent from the first quarter, and $3.48 per thousand cubic feet of gas, down 9 percent from the first quarter. Prices for both commodities were substantially below year-earlier levels.
"Our regions' focus on driving down lifting costs has resulted in lower costs on a boe basis for two quarters in a row, including a 6-percent decline from the first quarter to the second," Farris said.
Recent drilling and operational highlights included:
"Apache's strong financial position - with debt at 25 percent of capitalization and $772 million of cash on the balance sheet - provides many avenues for continued growth, either through our deep inventory of drilling prospects or through acquisitions," Farris said.
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