Ahead Of Apache's Q4 Results

(RTTNews) - Independent energy company Apache Corp. (APA) remains focused on driving the expansion of its North American portfolio, as it is the company's primary growth engine for the future. However, Apache's international businesses have a demonstrated track record of delivering very high rates of return, along with the ability to sustain production volumes through time and provide significant free cash flow back to the corporation.

In order to build its overall financial strength further, the company has significantly streamlined and high graded its portfolio; strengthened its balance sheet and liquidity; and has relentlessly pursued cost reductions.

Apache is set to release its fourth-quarter numbers before the bell on Thursday, February 25, with analysts polled by Thomson Reuters estimating a loss of $0.47 per share on revenue of $1.42 billion. Analysts' estimate typically exclude certain special items.

In the last quarter, the company delivered on its operational and financial guidance, made excellent progress on its cost reduction initiatives, and had tremendous success with the drill bit, most notably in the Permian Basin, Egypt and in the North Sea.

Apache raised its full-year 2015 North American onshore production guidance to a range of 307,000 - 309,000 boe per day, from prior guidance of 305,000 - 308,000 boe per day.

John Christmann, IV, Apache's chief executive officer and president, said, "As we turn to 2016, prudent capital allocation will continue to be our primary focus as we strive to spend within cash flows, enhance our returns and grow value for our shareholders."

"Longer-term, we have great confidence in the potential inherent in our portfolio. Our extensive, high-quality position in North American resource plays will continue to be the driver of our long-term growth," he added.

Q3 Overview

The company's third-quarter net loss totaled $5.7 billion or $14.95 per share, wider than $1.33 billion or $3.50 incurred last year.

The latest results included a ceiling test write down of $3.7 billion resulting from current low commodity price levels and a $1.5 billion charge related to an increase in the valuation allowance on deferred tax assets.

Adjusted net loss totaled $0.05 per share, while it was earnings per share of $1.27 last year. Analysts expected a loss of $0.36 per share.

Revenues plunged to $1.496 billion from $3.441 billion in the prior year. Analysts expected revenues of $1.58 billion.

The company's global production in the quarter was 542,000 barrels of oil equivalent or boe per day.