Oil and gas company Apache Corp. shares fell 3.8 % in the extended session Wednesday after the company reported losses that were narrower than consensus estimates. Apache reported a net loss of $4.48 billion, which amounts to $11.86 a share, which widened from a loss of $47 million, or 12 cents a share, a year ago. Adjusted for asset impairments, among other items, losses were 13 cents a share. Revenue fell to $1.34 billion from $1.68 billion a year ago. Analysts had estimated adjusted losses of 33 cents a share on sales of $1.31 billion. The company said in March it planned to halve U.S. drilling activity and reduce activity in the North Sea and Egypt. Shares of Apache have fallen 62% in the past year, as the S&P 500 index has gained 2.2%.
Stock futures are grinding higher again as investors look ahead to the reopening of the U.S. economy.
RBC Capital analyst Scott Hanold maintained a Hold rating on Apache on Wednesday, setting a price target of $12, which is approximately 13.10% above the present share price of $10.61.
Thank you for standing by, and welcome to the Apache Corporation first-quarter 2020 earnings announcement webcast. Good morning, and thank you for joining us on Apache Corporation's first-quarter financial and operational results conference call. Clay Bretches, executive vice president of operations; and Dave Pursell, executive vice president of development planning, reserves, and fundamentals, will also be available on the call to answer questions.
(Bloomberg) -- With thousands of oil wells choking back or completely shutting off production, companies already are looking ahead to what may prove to be an even bigger challenge: turning wells back on.U.S. and Canadian oil producers are curbing as much as 4.5 million barrels of daily supplies, according to Plains All American Pipeline LP. In the U.S. alone, drillers have announced plans to halt more than 600,000 barrels of daily output this month and next, said Rystad Energy AS. Old-style, conventional wells were the first to go down and the closures are expanding to some of the horizontal gushers that represent shale drillers’ prize assets.Although shutting down a well can be a relatively simple -- and even remote-controlled -- process, industry executives and their engineering teams aren’t altogether sure how smoothly an idle well can be restarted.“When you shut in wells, especially for a long period of time, you have a lot of surprises,” Clay Bretches, an executive vice president at Apache Corp., said during a conference call with analysts on Thursday. “Some of them are good and some of them are bad.”EOG Resources Inc., the world’s second-largest independent oil explorer by market value, is curtailing about one-fourth of its production and canceling almost 40% of new wells it had planned to bring online this year.An in-house analysis of 11 wells that were idle for an average of 23 days found they had a spike in production upon reopening, a sign that the reservoir suffered no damage, Houston-based EOG said in a slide presentation.Complete ShutdownsExecutives are careful about disclosing which wells are being curtailed -- which involves squeezing back on the volume of crude flowing out of the well -- versus those that are completely shut down. That’s because reversing a total shutdown presents a more challenging set of tasks and costs.Noble Energy Inc. is curbing daily output this month by as much as 10,000 barrels, mostly by completely shutting wells rather than choking back a portion of production.A portion of the company’s older wells may be difficult to reopen “but we should be able to restart most of the wells over time,” said Chief Operating Officer Brent Smolik. “You can almost think of them as storage, where we’re just storing it in the ground and then they’ll respond pretty quickly when we turn them back on.”Company executives told analysts during a conference call Friday that they hope to be able to restart most of those wells “over time.”Houston-based Apache has shut about 2,500 wells, and Bretches said the company is taking “great pains” to make sure they’re being preserved. That includes preventing corrosion and maintaining equipment that sits atop the well in remote fields.WPX Energy Inc., which plans to shut in a total of about 45,000 barrels of oil a day this month and possibly next, said it could be as simple as remotely opening up valves or speeding up electric pumps installed at the bottom of some wells. But the company cautioned against the expectation that it could be done quickly.Restoration Costs“It wouldn’t be as simple as ‘just give us a couple days and we’ll be back up running at 100%,’” said WPX Chief Operating Officer Clay Gaspar. “Anybody who says that, they’re probably short-changing their field organization just a touch.”That’s why deciding whether to shut a well involves more than just comparing operating costs and oil prices, according to Rystad. Producers also must weigh the cost and mechanical difficulty of restoring those wells back to pre-curtailed volumes.“When you start back up from the level we’re at, we do expect to have some start-up capital,” said Jeff Alvarez, head of investor relations of Occidental Petroleum Corp., which is shutting down about 5% of its production next month. “It’s things like, just when I spend $1 today, I don’t get production for a couple of months from that.”Cimarex Energy Co. said the obstacles to reopening wells mostly revolve around speed and costs, rather than any threats to the structural integrity of the rocks themselves. The Denver-based explorer held an internal technical session recently that looked at how its reservoirs would be affected by shut-ins, and the results showed that they were likely to be “just fine.”Pipeline Capacity“We think we’re in pretty good shape with our reservoirs to shut them in and bring them back when we need,” CEO Tom Jorden said during a conference call.Oil companies aren’t the only ones who have to think about the long-term impacts of shuttered wells. Millions of miles of pipelines crisscross the continent to haul crude from the field to refineries and export terminals. As supplies drop, so does demand for pipeline capacity.Pipeline operator Targa Resources Corp. was asked Thursday if the wells its system serves would ever ramp up to previous volumes.“I think for the most part, we’d expect the shut-in volumes to come back and perform well,” Targa CEO Matt Meloy said. “Could there be some older, really low-rate vertical wells ... which they shut-in and just don’t bring back? I think there could be some amount of those.”(Updates with EOG’s analysis in fifth, sixth paragraphs; Noble shut-ins in eighth, ninth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Benchmarks closed mixed on Wednesday as data showed that private payroll had furloughed more than 20 million workers in April, highlighting the economic impact of the pandemic.
HOUSTON, May 14, 2020 -- The board of directors of Apache Corporation (NYSE, Nasdaq: APA) has declared a regular cash dividend on the company's common shares. The dividend.
Even with the latest surge in stock prices, nearly all energy stocks are down by double-digit percentages for the year.
Q1 2020 Apache Corp Earnings Call
Shares of oil companies Devon Energy (NYSE: DVN), Continental Resources (NYSE: CLR), and Apache (NYSE: APA) rose more than 80% in April, according to data provided by S&P Global Market Intelligence. Meanwhile, Continental's share price more than doubled, up 114% to close the month at $16.39/share. For investors who bought in after the oil price crash of early March, these three oil producers have delivered handsome returns.
Apache (APA) delivered earnings and revenue surprises of 56.67% and -0.17%, respectively, for the quarter ended March 2020. Do the numbers hold clues to what lies ahead for the stock?
Oil prices started this week with a bang. WTI, the primary U.S. oil price benchmark, had rallied more than 10% by 10:30 a.m. EDT on Monday, to around $32.50 a barrel, while Brent, the global oil price benchmark, jumped more than 7% to nearly $35 a barrel. The surge in crude prices buoyed most oil stocks.
Stocks gave back a chunk of their gains in the last hour of trading, but investors nonetheless continued to push stocks higher in the face of grim economic data and lackluster earnings reports on Tuesday.
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Apache Corporation (NYSE, Nasdaq: APA) today announced it has elected to list its common stock solely on the Nasdaq Stock Market beginning June 9, 2020. The company will discontinue listing its common stock on the New York Stock Exchange and the Chicago Stock Exchange after the market closes on June 8, 2020. Additionally, the company will discontinue listing its 7.75% notes due 2029 from the New York Stock Exchange on the same date, and such notes will no longer be listed on any national securities exchange.
Moody's Investors Service ("Moody's") downgraded Apache Corporation's (Apache) senior unsecured ratings to Ba1 from Baa3, and its commercial paper rating to Not Prime from Prime-3. Moody's concurrently assigned a Ba1 Corporate Family Rating (CFR), a Probability of Default Rating of Ba1-PD, and a Speculative Grade Liquidity Rating of SGL-2 to Apache. "The company's returns and cash flow based leverage metrics will improve in line with the recovery in oil prices, but those metrics position Apache more in line with Ba1 rated E&P peers."
HOUSTON, May 06, 2020 -- Apache Corporation (NYSE, Nasdaq: APA) today announced first-quarter 2020 results on its website at www.apachecorp.com or investor.apachecorp.com as.
Apache's (APA) Q1 oil and natural gas production declines 7% from the year-ago quarter due to lower contribution from the MidContinent/Gulf Coast region.