Member access

4-Traders Homepage  >  Shares  >  Nyse  >  Apache Corporation    APA   US0374111054

APACHE CORPORATION (APA)

44
SummaryQuotesChart AnalysisNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll news 

Apache Corporation : Apache 2nd-Quarter Profit Tumbles 72% on Write-Down, Lower Prices

08/02/2012 | 08:56am US/Eastern
   By Victoria Stilwell 
 

Apache Corp.'s (APA) second-quarter profit sank 72% as revenue declined and the exploration-and-production company booked a $480 million write-down on its Canada oil and gas properties amid historically low natural gas prices.

Results missed expectations.

The company lowered its forecast for production growth, now seeing global growth of 6% to 9% from earlier expectations of 7% to 13%.

Apache has been acquisitive in recent years, adding mature fields from larger rivals. Apache has spent more than $15 billion in the past two years to acquire a series of assets in Egypt, the North Sea, West Texas and the Gulf of Mexico.

In January, Apache agreed to a $2.85 billion deal for privately held Cordillera Energy Partners III LLC, giving it 254,000 acres atop a property known as the Granite Wash, doubling its acreage in the energy field.

Apache also in June said it plans to produce more than 1 million barrels of oil equivalent a day in 2016, with U.S. oil production leading its growth. About 58% of Apache's production will be oil and similar liquids, up from 50% in 2011, the company said.

Apache reported a profit of $356 million, down from a year-earlier profit of $1.26 billion. Per-share earnings, which include the impact of stock dividends, slipped to 86 cents from $3.17.

The latest quarter included a $480 million reduction in the carrying value of its oil and gas properties in Canada stemming from lower natural gas prices. Excluding this item and others, per-share earnings were $2.07, down from $3.22.

Revenue declined 8.4% to $3.97 billion.

Analysts surveyed by Thomson Reuters recently expected per-share earnings of $2.53 on revenue on $4.26 billion.

Average prices, including hedging impacts, decreased 8.1% for oil, 32% for natural gas liquids and 23% for natural gas.

Shares fell 0.9% to $86.04 in recent premarket trade. The stock is off 28% in the past 12 months through Wednesday's close.

Write to Victoria Stilwell at Victoria.Stilwell@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

React to this article
Latest news on APACHE CORPORATION
1d ago APACHE : to sell oil and gas assets for $1.4 bln
1d ago BURU ENERGY : Apache Spuds Commodore-1 Farm-in Well on EP 390 Permit
2d ago APACHE : selling oil and gas assets for $1.4 billion
2d ago APACHE : unloads south Louisiana oil, gas fields in $1.4 billion sale
2d ago APACHE : to Divest Some Oil and Gas Assets for $1.4 Billion
2d ago APACHE : Provides North American Onshore Update, Announces Sale Of Non-Core Sout..
2d agoDJOne Dead in Gulf of Mexico Oil Platform Explosion
3d agoDJSANDRIDGE ENERGY : Explosion on Gulf of Mexico Oil Platform Kills One, Injures T..
3d ago BAKER HUGHES : The U.S. Energy Association (USEA) - Briefing
3d ago APACHE : selling assets for $1.4B
Advertisement
Chart
Duration : Period :
Apache Corporation Technical Analysis Chart | APA | US0374111054 | 4-Traders
Income Statement Evolution
More Financials
Dynamic quotes  
ON
| OFF