Upcoming AWS Coverage on Cimarex Energy Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 19, 2017 / Active Wall St. announces its post-earnings coverage on Apache Corp. (NYSE: APA). The Company reported its first quarter fiscal 2017 financial results on May 04, 2017, and announced a dividend. The Oil and gas producer exceeded revenue expectations. Register with us now for your free membership at:

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One of Apache's competitors within the Independent Oil & Gas space, Cimarex Energy Co. (NYSE: XEC), reported its Q1 2017 financial results on Wednesday, May 10, 2017. AWS will be initiating a research report on Cimarex Energy in the coming days.

Today, AWS is promoting its earnings coverage on APA; touching on XEC. Get our free coverage by signing up to:

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Earnings Reviewed

For the quarter ended March 31, 2017, Apache's revenues soared to $1.88 billion, ahead of analysts' consensus estimates of $1.49 billion and Q1 2016 revenue of $1.08 billion.

Apache delivered Q1 2017 production of 481,000 barrels of oil equivalent (Boe) per day and adjusted production of 398,000 Boe per day, which excludes Egypt non-controlling interest, Egypt tax barrels and 1,100 Boe per day of divested volumes. During Q1 2017, the Company's production for oil and natural gas liquids (NGLs) was 257,534 barrels per day (Bbl/d), while natural gas output totaled 841.5 million cubic feet per day (MMcf/d) for the reported quarter. Apache's average realized crude oil price for Q1 2017 was $51.20 per barrel, up compared to averaged realized price of $31.62 in the year ago same quarter. The Company's average realized natural gas price during the reported quarter was $2.74 per thousand cubic feet (Mcf).

For Q1 2017, Apache returned to profitability with GAAP earnings of $213 million, or $0.56 per diluted common share, compared to GAAP loss of $372 million, or $0.98 per share, for Q1 2016. The Company reported adjusted earnings of $31 million, or $0.08 per share, below Wall Street's estimates of $0.14 per share.

Operational Summary

During Q1 2017, Apache operated an average of 30 rigs and drilled and completed 46 gross-operated wells worldwide. In North America, the Company drilled and completed 25 gross-operated wells during the reported quarter and posted production of 252,000 Boe per day. In the Permian Basin, Apache operated an average of 13 rigs and drilled and completed 22 gross-operated wells during Q1 2017, up from 17 wells drilled and completed in the previous quarter. Production averaged 148,000 Boe per day.

During Q1 2017, in the Delaware Basin, at Alpine High, Apache averaged four rigs and announced three new test well results, two of which were shallow source rock tests and the other a successful azimuth test in the Woodford formation at the King Hidalgo pad in the Southern portion of the play. The Company also continued pad drilling in Pecos Bend with an average of two rigs. In the Midland Basin, the Company averaged six rigs during the reported quarter and drilled and completed nine gross-operated wells.

For Q1 2017, Apache's production in the North Sea averaged 58,000 Boe per day. Apache operated two platform rigs during the reported quarter, with one each at the Forties and Beryl fields. Additionally, the Company has two semi-submersible drilling rigs under rig sharing agreements and operated one during the quarter. The subsea tieback development at Callater progressed with drilling underway on the first production well and facilities installation. Callater remains on schedule to deliver first production in Q3 2017.

Apache's net basis Egypt production, excluding minority interest and tax barrels, was 88,000 Boe per day. The Company averaged 11 rigs and drilled and completed 18 wells during the reported quarter.

Cash Flow

During Q1 2017, Apache's net cash by operating activities was $455 million compared to $239 million in Q1 2016, and adjusted earnings before interest, taxes, depreciation, depletion, amortization and exploration expenses (adjusted EBITDAX) was $999 million compared to $552 million in the year earlier same quarter. Apache ended the quarter with $1.5 billion of cash, up from $1.4 billion at the end of Q4 2016.

During Q1 2017, Apache's oil and gas capital investment was $646 million, with 68% focused on the Permian Basin. During the reported quarter, the Company closed two non-core Permian acreage transactions for cash proceeds of $440 million. Furthermore, the Company closed $26 million in further non-core divestments. At the end of Q1 2017, Apache's net debt position was slightly below $7 billion, a decrease of $200 million from the previous quarter.

On May 12, 2017, Apache's board of directors declared regular cash dividend on the Company's common shares. The dividend on common shares is payable August 22, 2017, to stockholders of record on July 21, 2017, at a rate of 25 cents per share.

Outlook

Apache's 2017 capital expenditures are tracking in-line with its guidance of $3.1 billion. The Company reduced its FY17 lease operating expenses (LOE) guidance range to $8.25 to $8.75 per Boe. Following strong production and drilling results on an ytd basis and the early startup of gas flows at Alpine High, the Company updated its 2017 North American production guidance to 256,000 to 264,000 Boe per day.

Stock Performance

At the close of trading session on Thursday, May 18, 2017, Apache's stock price slightly fell 0.54% to end the day at $49.92. A total volume of 3.57 million shares were exchanged during the session. The stock currently has a market cap of $18.97 billion and has a dividend yield of 2.00%.

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