Apache Q4 Profit Plunges, Results Miss Estimates

(RTTNews) - Oil and natural gas producer Apache Corp. (APA) reported Thursday a profit for the fourth quarter that plunged from last year, reflecting higher costs and expenses as well as a revenue decline amid lower production. Both adjusted earnings per share and quarterly revenues missed analysts' expectations.

"Our strong performance is driven by predictable liquids production growth from our North American onshore assets combined with large free cash flow generation from our international operations," Chairman and CEO Steven Farris said in a statement.

The Houston, Texas-based company reported net earnings of $174 million or $0.43 per share for the fourth quarter, sharply down from $649 million or $1.64 per share in the prior-year quarter.

Excluding items, adjusted earnings for the quarter were $631 million or $1.57 per share, compared to $907 million or $2.27 per share in the year-ago quarter.

On average, 30 analysts polled by Thomson Reuters expected the company to report earnings of $1.79 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter declined to $3.58 billion from $4.39 billion in the same quarter last year, and missed seventeen Wall Street analysts' consensus estimate of $3.67 billion.

The company said total worldwide production oil, natural gas, and natural gas liquids for the quarter averaged 687,911 barrels of oil equivalent or boe per day, down from last year's 800,005 boe per day. Excluding the non-controlling interest in Egypt operations, production totaled 661,484 boe per day.

Apache's oil and natural gas liquids production was 55 percent of total volume in the quarter, and contributed 83 percent of revenues reflecting the premium prices received for crude oil and NGLs.

Worldwide average price of crude oil grew to $100.59 per barrel from $98.93 per barrel, while average price for natural gas declined to $3.71 per thousand cubic feet (Mcf) from $4.14 per Mcf in the prior-year quarter.

The company's costs and expenses for the quarter increased to $2.83 billion from $2.75 billion in the year-ago quarter.

Last week, Apache 's board raised the regular quarterly cash dividend on its common shares by 25 percent to $0.25 per share, payable on May 22 to stockholders of record on April 22, 2014.

For fiscal 2013, the company reported net earnings of $2.19 billion or $5.50 per share, higher than $1.93 billion or $4.92 per share in the prior year. Excluding items, adjusted earnings for the year were $3.17 billion or $5.50 per share, compared to $3.77 billion or $9.48 per share in the year ago. Revenues for the quarter declined to $16.05 billion from $17.08 billion in the previous year.

Street was looking for full-year 2013 earnings of 7.92 per share on annual revenue of $16.28 billion.

The company announced that worldwide estimated proved reserves totaled 2.65 billion boe at year-end 2013. Excluding acquisitions, divestments and revisions, proved reserves increased 4 percent.

"We made significant strides in focusing our portfolio during the year, exiting production on the Gulf of Mexico Shelf, streamlining our Canada position and establishing our partnership with Sinopec in Egypt. The proceeds of these transactions - which together total approximately $7 billion - have provided the company with additional financial flexibility. The sale of our Argentina operations announced yesterday continues our decisive strategic steps in 2013," Farris added.

On Wednesday, the company agreed to sell its entire operations in Argentina to state-owned energy company YPF SA (YPF) for $852 million.

In Thursday's regular trading session, APA is currently trading at $79.07, up $2.21 or 2.72% on a volume of 0.36 million shares. In the past 52-week period, the stock has been trading in a range of $67.91 to $94.84.