Apache Corporation Posts Q4 Earnings Beat

Apache Corporation Posts Q4 Earnings Beat


Shares of Apache Corp. (APA) were up 2% early Thursday after the energy company reported mixed Q4 results with better-than-expected adjusted earnings on lower revenues that missed the consensus of analysts polled by Capital IQ. Q4 adjusted earnings totaled $404 million, or $1.07 per share, down from $610 million, or $1.52 a share, in the year-earlier period, yet above the average analyst estimate of $0.77 a share.

GAAP net loss totaled $4.8 billion, or $12.78 per diluted share, primarily due to after-tax, non-cash charges of $5.2 billion, compared to net income of $174 million, or $0.43 per share in the prior-year period. Total revenue decreased to $2.95 billion from $3.44 billion, falling short of the consensus of $3.11 billion.

The company anticipates capital spending of $2.1 billion to $2.3 billion in onshore North America, with plans to operate an average of 17 rigs in 2015. Onshore production in North America in 2015 should be flat relative to 2014 average production of 302,000 boe per day.

Apache also anticipates a capital budget of $1.5 billion to $1.7 billion for international and offshore operations, with 2015 production expected slightly higher than the average production of 207,000 boe per day in 2014. APA shares were up 2% at $66.02, still moving in the lower half of the 52-week range of $54.34 to $104.57.