Apache (APA) Q2 Earnings Crush Loss Estimate, Beats Revenue – Tale of the Tape

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Houston, TX-based Apache Corp. (APA) is one of the world's leading independent energy companies engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids. Approximately 70% of the company’s proved reserves and 60% of its production comes from North America, where its operations are focused in the Permian Basin, the Anadarko basin in western Oklahoma and the Texas Panhandle, Gulf Coast areas of the U.S., and in Western Canada.

Currently, Apache has a Zacks Rank #3 (Hold) but that could change following its second quarter 2015 earnings report which has just released. Coming to earnings surprise history, the partnership has a good track record: its beaten/met estimates in each of the last four quarters.

We have highlighted some of the key details from the just-released announcement below:

Earnings: Apache earnings crush loss estimate. Earnings per share – excluding one-time items – came in at 22 cents, contrary to the Zacks Consensus Estimate for a loss of 32 cents.

Revenue: Revenues beat expectations. Revenues of $1,977 million were above the Zacks Consensus Estimate of $1,826 million.

Key Stats: The production of oil and natural gas (excluding divested assets and non-controlling interests) averaged 488,602 oil-equivalent barrels per day (BOE/d) (65% liquids), up 9% year over year. Apache’s production for oil and natural gas liquids (NGLs) was up 9% at 318,739 barrels per day (Bbl/d), while natural gas production of 1,019.2 million cubic feet per day (MMcf/d) was 8% higher from the second quarter 2014 level.

The average realized crude oil price during the second quarter was $58.09 per barrel, representing a decrease of 44% from the year-ago realization of $102.95. Moreover, the average realized natural gas price during the June quarter of 2015 was $2.73 per thousand cubic feet (Mcf), down 34% from the year-ago period.

Check back later for our full write up on this Apache earnings report later!

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