Apache Q3 Adj. Profit Meets View

(RTTNews) - Oil and natural gas producer Apache Corp. (APA) on Thursday reported a loss for the third quarter, reflecting one-time charges and lower revenues. The company also reported a 14 percent decline in production for the quarter. However, adjusted earnings per share for the quarter matched analysts' expectations.

Houston, Texas-based Apache reported net loss attributable to common shareholders for the third quarter of $1.30 billion or $3.50 per share, compared to net income of $300 million or $0.75 per share in the prior-year quarter.

The latest quarter's results include three non-cash charges. The company incurred an $814 million U.S. deferred tax charge, a $249 million income tax expense and a $1 billion after-tax reduction in the carrying value of its oil and gas properties driven by lower oil and natural gas liquids price realizations and the prior announced deep water sale.

Excluding items, adjusted earnings for the quarter were $528 million or $1.38 per share, compared to $937 million or $2.32 per share in the year-ago quarter.

On average, 30 analysts polled by Thomson Reuters expected the company to report earnings of $1.38 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues and other for the quarter declined 4 percent to $3.74 billion from $3.90 billion in the same quarter last year. Analysts' revenue consensus was $3.48 billion.

Oil and gas production revenues for the quarter decreased 19 percent to $3.45 billion. Apache's total worldwide production of oil, natural gas, and natural gas liquids for the quarter averaged 636,802 barrels of oil equivalent or boe per day, down 14 percent from last year's 742,065 boe per day.

However, pro forma production in the quarter averaged 562,087 boe per day, up 6 percent from 528,952 boe per day in the year-ago period.

Worldwide, Apache received an average price of $94.69 per barrel of crude oil, down 13 percent from the year-ago period. Average price for natural gas rose 9 percent from the prior-year quarter to $3.88 per thousand cubic feet or Mcf.

Total costs and expenses for the quarter rose 21 percent from the year-ago period to $3.96 billion.

Apache said it will provide an update on its North American onshore business on November 20.

APA closed Wednesday's trading at $75.56. In Thursday's pre-market activity, the stock is down $1.58 or 2.09 percent to $73.98.