Apache Corp (APA)

[eFinanceMarkets]

$APA Apache -5% on wider than expected Q2 loss, reduced production guidance

Apache (APA -5.1%) slumps deeply into the red after missing Q2 earnings estimates by a wide margin and lowering its 2017 production guidance.

APA says Q2 total oil and gas production fell 14% Y/Y to 460K boe/day from 535K in the year-ago quarter, as it operated an average of 35 rigs and drilled and completed 66 gross-operated wells worldwide during the quarter.
Total daily oil production continues to fall, slipping ~15% or 40K bbl/day during Q2 to 243K bbl/day, and revenue from oil production fell 6.1% to $1.05B, but CEO John Christmann says production is proceeding according to plan.

“We have shifted to a growth trajectory,” the CEO says. “We expect continued production volume increases at Alpine High and in the Midland Basin, as well as from our international regions during the second half of 2017.”

APA maintains its planned $3.1B capex for 2017, saying the budget is not impacted by the Canada exit since most of the capital allocated to Canada this year will have been spent by the time all transactions have closed.