Apache Announces fourth quarter 2014 Results
Apache Corporation (NYSE, Nasdaq: APA) announced a fourth-quarter 2014 net loss of $4.8 billion or $12.78 per diluted common share, primarily as a result of after-tax, non-cash charges totaling $5.2 billion. Adjusted earnings, which exclude certain items that impact the comparability of results, totaled $404 million or $1.07 per share. Net cash provided by operating activities was approximately $1.9 billion in the fourth quarter of 2014, with cash from operations, before changes in operating assets and liabilities, totaling $2.1 billion.
– 2014 onshore pro forma North American liquids production grew 18.6 percent year over year; pro forma worldwide production grew 6.4 percent
– Fourth-quarter 2014 worldwide production averaged 673,300 barrels of oil equivalent (boe) per day; onshore North American production averaged 367,800 boe per day
– Fourth-quarter net loss of $4.8 billion or $12.78 per share; adjusted earnings of $404 million or $1.07 per share
– Fourth-quarter operating activities provided net cash of $1.9 billion; cash flow from operations before changes in operating assets and liabilities of approximately $2.1 billion
– Expecting approximately $3.7 billion in cash upon closing from previously announced sale of Kitimat and Wheatstone LNG facilities
– 2015 onshore North American production, adjusted for asset sales, is projected to be relatively flat year over year on a capital budget of $2.1 to $2.3 billion, with North American onshore oil production estimated to increase 1 to 3 percent
– 2015 pro forma international and offshore production projected to increase slightly year over year on a capital budget of $1.5 to $1.7 billion
“Onshore North American liquids production growth exceeded our guidance for 2014, and we exited the year with strong operational momentum,” said John J. Christmann IV, Apache’s chief executive officer and president. “Since our Nov. 20th North American Update, oil and gas prices have decreased substantially, prompting us to act quickly and decisively to reduce activity levels and reset our well cost structure. We have reduced our rig count from an average of 91 rigs in the third quarter of 2014 to an estimated 27 rigs by the end of this month. We have also reduced our frac crews by approximately 50 percent during the same time period and are delaying some well completions until service costs decrease materially. In 2015, Apache will run a streamlined capital program that focuses on efficiency improvements, downspacing and other strategic tests to further delineate our extensive inventory of locations within the Permian, Eagle Ford, Canyon Lime, Duvernay and Montney. While we are fortunate to have a substantial inventory of projects that can make economics at these oil prices, we believe it more prudent to curtail our activity until costs are lower and prices recover.
This strategy will enable us to further strengthen our balance sheet and preserve the financial flexibility to capitalize on industry opportunities during the downturn.”
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