US Oil Producer Apache Raises Production Forecast
Nov 5 (Reuters) - Apache Corp reported a much smaller-than-expected quarterly loss and joined a growing list of U.S. oil producers in raising full-year production forecast even as many of them cut spending.
Increased efficiencies, a drop in service costs and low break-even levels in core U.S. shale fields are all helping U.S. oil companies increase production on reduced budgets.
U.S. producers ranging from Oasis Petroleum Inc to Devon Energy Corp have forecast higher production in their latest quarterly reports.
Apache on Thursday raised its full-year North American onshore production forecast to 307,000-309,000 barrels of oil equivalent per day (boepd), from 305,000-308,000 boepd.
The company also increased its international and offshore production forecast to 172,000-174,000 boepd, from 164,000- 168,000 boepd.
"As we turn to 2016, prudent capital allocation will continue to be our primary focus...," Chief Executive John Christmann said in a statement.
Oil producers are keeping a tight leash on spending to cope with a near-60 percent drop in global oil prices since June last year that has sapped profitability.
The net loss attributable to Apache's common shareholders widened to $5.56 billion, or $14.95 per share, in the third quarter ended Sept. 30, from $1.33 billion, or $3.50 per share, a year earlier.
The latest quarter included a $1.5 billion charge related to deferred tax assets and a $3.7 billion writedown due to the oil slump.
Adjusted loss was 5 cents per share, much lower than the average analyst estimate of 36 cents.
Revenue more than halved to $1.5 billion.
(Reporting by Swetha Gopinath in Bengaluru; Editing by Savio D'Souza and Sriraj Kalluvila)
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