Upcoming AWS Coverage on Pioneer Natural Resources Post-Earnings Results
LONDON, UK / ACCESSWIRE / November 14, 2016 / Active Wall St. announces its post-earnings coverage on Apache Corp. (NYSE: APA). The company released its financial results for the third quarter fiscal 2016 on November 03rd, 2016. The oil and natural gas producer's results outperformed market expectations as a result of strategic testing during the downturn that yielded excellent results with Alpine High discovery, but also significantly improved results in its Midland and Delaware Basin focus areas. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Apache's competitors within the Independent Oil & Gas space, Pioneer Natural Resources Co. (NYSE: PXD), reported ON November 01, 2016, its financial and operating results for the quarter ended September 30, 2016. AWS will be initiating a research report on Pioneer Natural Resources in the coming days.
Today, AWS is promoting its earnings coverage on APA; touching on PXD. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=APA
http://www.activewallst.com/registration-3/?symbol=PXD
Earnings Reviewed
Earnings Figures
For the three months ended on September 30th, 2016 Apache reported a loss of $607 million, or $1.60 per diluted common share, drastically down from loss of $4.14 billion, or $10.95 per diluted common share. Losses, adjusted for one-time gains and costs, Apache's Q3 2016 loss totaled $12 million, or $0.03 per share, the result was better than analysts' expectations of a loss of $0.11 per share. Apache's, adjusted earnings before interest, taxes, depreciation, depletion, amortization, and exploration expenses (adjusted EBITDAX) was $896 million. The company posted revenue of $1.44 billion during the reported quarter, surpassing analysts' forecasts of revenue of $1.38 billion.
Operational Insights
During Q3 2016, Apache reported global production of 520,000 Boe per day and adjusted production of 438,000 Boe per day, excluding Egypt noncontrolling interest and tax barrels. Production from North America Onshore came in at 270,000 Boe per day while adjusted International and Offshore production was 168,000 Boe per day. Apache's Permian region produced 159,000 barrels of oil equivalent per day in Q3 2016, or nearly 60% of Apache's total North American onshore production. Production decreased by roughly 6,200 BOE per day in the Permian Basin from Q2 2016.
The company placed on production 35 gross-operated wells during the reported quarter, predominantly in the Permian Basin. In the Delaware Basin at Alpine High, the company placed 5 gross-operated wells on production, 3 of which were disclosed in September. In the Delaware Basin, Apache placed 8 gross-operated wells on production during Q3 2016, including the Pelican 106H, which achieved a 30-day average initial production (IP) rate of 942 Boe per day from a 4,700-foot lateral in the third Bone Springs formation at the company's Pecos Bend area. In the Midland Basin, Northwest Shelf and Central Basin Platform, the company placed 16 gross-operated wells on production, including 13 wells (nine horizontal and four vertical) in the Yeso play on the Northwest Shelf. Apache also tested a Lower Montney well in the company's Wapiti focus area in Alberta tested at an initial rate of 10.6 MMcf of natural gas per day and 2,000 barrels of condensate per day with an estimated total drill and complete cost of $6.2 million.
During Q3 2016, Apache's production from the North Sea averaged 62,000 Boe per day, down from the previous quarter due to maintenance and third-party facility down time. The company achieved its third consecutive exploration success near the Beryl Field with a discovery in two separate fault blocks at the recently drilled Storr prospect. Gross Production from Egypt averaged 350,000 Boe per day during the quarter, and net production, excluding non-controlling interest and tax barrels, averaged 98,000 Boe per day. Apache placed nine wells on production during Q3 2016.
Financials
During Q3 2016, total capital investment, excluding Egypt non-controlling interest, was $466 million. Net cash provided by operating activities was $651 million during the reported quarter. As of September 30th, 2016, Apache's long-term debt remained unchanged at $8.7 billion. The company plans to balance capital spending with cash flow in Q4 2016 and is targeting to achieve position of $1.5 billion at year-end by positive cash contributions from working capital and proceeds from noncore asset sales. The company ended the quarter with $1.2 billion of cash. Lease operating costs in the third quarter were $7.94 per barrel of oil equivalent, approximately 10% lower than the same period last year.
Outlook
Following strong production and drilling results year-to-date, Apache is forecasting to end 2016 at the high end of North American Onshore production guidance of 268,000 to 278,000 Boe per day and at the midpoint of International and Offshore production guidance of 170,000 to 180,000 Boe per day. For Q4 2016, the company plans to increase development drilling activity in the Midland Basin with the addition of three rigs.
Stock Performance
Last Friday, Apache's stock closed the trading session at $57.72, falling by 1.03% from its previous closing price of $58.32. A total volume of 3.52 million shares have exchanged hands. The company's stock price advanced 16.18% in the past three months, 6.23% in the last six months, and 20.47% in the previous twelve months. The stock currently has a market cap of $23.45 billion. The company's shares have a dividend yield of 1.73%.
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