Back to top

Image: Bigstock

Apache's (APA) Q3 Loss Narrower Than Expected, Sales Top

Read MoreHide Full Article

Apache Corporation (APA - Free Report) reported third-quarter 2020 loss per share — excluding one-time items — of 16 cents, narrower than the Zacks Consensus Estimate of a loss of 37 cents and also the year-ago quarter’s loss of 29 cents. This better-than-expected result is led by higher-than-anticipated production volumes. Precisely, the average daily output came in at 445,241 barrels of oil-equivalent per day (BOE/d), beating the Zacks Consensus Estimate of 424,000 BOE/d.

Also, revenues of $1.12 billion outpaced the Zacks Consensus Estimate of $980 million but the same fell 24.2% from the year-ago quarter’s sales of $1.48 billion due to weak year-over-year oil price realizations.

Production & Selling Prices

Production of oil and natural gas averaged 445,241 BOE/d, which comprises 65% liquids. The figure slid 1% from the year-ago quarter due to an unimpressive contribution from the United States.

The U.S. output (accounting for 65.6% of the total) dipped 3% year over year to 258,058 BOE/d while the company’s international operations increased 8% to 135,471 BOE/d. Apache’s oil and natural gas liquids (NGLs) production was 255,780 barrels per day (Bbl/d). Natural gas output totaled 826,490 thousand cubic feet per day (Mcf/d).

The average realized crude oil price during the third quarter was $40.88 per barrel, down 30.2% from the year-ago realization of $58.60. However, the number came ahead of the Zacks Consensus Estimate of $40.21. Meanwhile, the average realized natural gas price increased to $1.90 per thousand cubic feet (Mcf) from $1.66 in the year-ago period and also topped of the Zacks Consensus Estimate of $1.82.

Apache Corporation Price, Consensus and EPS Surprise

Apache Corporation Price, Consensus and EPS Surprise

Apache Corporation price-consensus-eps-surprise-chart | Apache Corporation Quote

Costs & Financial Position

Apache’s third-quarter lease operating expenses totaled $259 million, down 26% from the year-ago period. Moreover, total operating expenses declined 27.9% from the corresponding period of 2019 to $1.07 billion. This upside was mainly owing to lower depreciation & amortization expenses and decreased general and administration costs.

During the quarter under review, Apache generated $304 million of cash from operating activities while it invested $141 million in capital expenditures. The company reported an adjusted operating cash flow of $401 million in the third quarter.

As of Sep 30, this oil giant had approximately $162 million of cash and cash equivalents. Meanwhile, Apache had a long-term debt of $8.2 billion.

Guidance

This Houston, TX-based explorer and producer projects its 2021 annual capital view to be nearly $1 billion, depending on $40 per barrel WTI oil and $2.75 Henry Hub natural gas price with capital allocation priorities similar to 2020.

Further, the company expects its DUC completion program to improve its Permian oil production to the level of fourth-quarter 2020 readings. However, Egypt and the North Sea volumes are anticipated to experience moderate declines.

Zacks Rank & Stocks to Consider

Apache currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the energy space are Oasis Petroleum Inc. , Antero Resources Corporation (AR - Free Report) and Earthstone Energy, Inc. , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>


See More Zacks Research for These Tickers


Pick one free report - opportunity may be withdrawn at any time


APA Corporation (APA) - free report >>

Antero Resources Corporation (AR) - free report >>

Published in