Apache 3Q Earnings at USD 300 Mln, USA

Apache Corporation announced third-quarter 2013 earnings of $300 million and adjusted earnings, which exclude certain items that impact the comparability of results, of $932 million. For the same period in the prior year, Apache reported earnings of $161 million and adjusted earnings of $861 million.

Net cash provided by operating activities came to approximately $2 billion, with cash from operations before changes in operating assets and liabilities totaling $2.7 billion, up from $2.4 billion in the year-ago period.

“The strength of our financial performance this quarter is a testament to the effectiveness of our strategy to rebalance our portfolio and drive returns by achieving the right mix of predictable production growth from our North American onshore assets combined with the substantial free cash flow generation from our international operations,” said G. Steven Farris, chairman and chief executive officer at Apache. “Apache’s focused drilling program in North America is yielding significant production growth. Our Permian and Central regions are the main drivers of this higher production, adding nearly 13,000 barrels per day of oil and natural gas liquids from the second quarter. These two regions represented 35 percent of the company’s total worldwide liquids production, up from 27 percent a year ago, contributing 149,000 barrels per day during the third quarter. Going forward, our international regions will be the primary source of excess cash flow to fund our next growth cycle.

“We also made significant progress rebalancing our portfolio to provide more predictable and consistent growth. During the quarter we closed on transactions in the Gulf of Mexico Shelf and Canada, and announced a significant partnership with Sinopec in Egypt, which we expect to close by the end of this year,” Farris said. “As previously announced, sale proceeds are being used to reduce our debt and buyback shares. We’ve already repurchased nearly 8 million shares of Apache common stock, and we’re on track to pay down $2 billion in debt by yearend.”

[mappress]
LNG World News Staff, November 07, 2013; Image: Apache