Apache's Third Quarter Earnings Climb to 59 Cents Per Share
HOUSTON, Oct. 28 /PRNewswire/ -- Apache Corporation (NYSE: APA) said today
that the combination of higher production and stronger oil and gas prices
pushed third quarter net income to a record $67.8 million, or 59 cents per
share, compared with $2.6 million, or 3 cents per share, in the year-earlier
period.
During the third quarter, oil production averaged a record 97,226 barrels
per day, up 36 percent from 71,407 barrels per day in the year-earlier
quarter. Natural gas production averaged 694 million cubic feet (MMcf) per
day, also a record, up 20 percent from 576 MMcf per day in the prior-year
period.
Apache's financial results reflected the recovery in oil and gas prices
during the third quarter. The company realized an average of $20.52 per
barrel of oil, up 64 percent from $12.49 per barrel in the prior-year period.
Natural gas prices increased 27 percent, to $2.37 per thousand cubic feet
(Mcf), from $1.86 per Mcf in the year-earlier period.
Cash from operations also set a record, reaching $223.9 million in the
third quarter, up from $96.9 million in the prior-year period.
"Apache's improved financial performance in the third quarter is not just
the result of higher oil and gas prices," said G. Steven Farris, president and
chief operating officer. "We significantly increased production while
reducing our per-barrel operating costs."
Farris said the production gains were in large part due to Apache's
aggressive program of development drilling and workovers on producing
properties in the Gulf of Mexico acquired from Shell in the second quarter.
When Apache took over operations on July 1, the properties had net production
of 128 MMcf of gas per day and 24,355 barrels of oil per day. By the end of
the quarter, Apache had increased net gas production by 55 percent to 199 MMcf
per day and net oil production by 19 percent to 29,071 barrels per day.
Apache also increased natural gas production in Australia to 86 MMcf per
day from 53 MMcf per day in the prior-year period. The company commenced gas
sales from the Khalda concession in Egypt.
During the third quarter, Apache announced a definitive agreement to buy
oil and gas producing properties in Alberta, Saskatchewan and British Columbia
from Shell Canada Ltd. The transaction -- the company's second major Shell-
related acquisition of 1999 -- is expected to close by Nov. 30.
"Since we re-established our Canadian position with the 1995 acquisition
of DEKALB Energy, we have looked for an appropriate building block of people,
prospective exploration acreage, seismic data and a production base with
upside potential," said Raymond Plank, chairman and chief executive officer.
"We believe we now have all of the elements in place to grow our Canadian
portfolio rapidly."
"Because of record production and strong prices, we expect to have cash in
the bank approaching $140 million by the closing of the Canada transaction,"
said Roger Plank, chief financial officer. "We intend to finance the purchase
with cash and debt, which will leave our debt-to-capitalization ratio at about
42 percent."
Apache Corporation is a large gas and oil independent with operations in
North America, Egypt, Western Australia, Poland and People's Republic of
China. Its common shares are traded on the New York and Chicago stock
exchanges.
This news release contains certain "forward-looking statements" as defined
by the Private Securities Litigation Reform Act of 1995 including, but without
limitation, expectations, beliefs, plans and objectives regarding Apache's
consummation of acquisitions, future growth, future cash reserves and future
capitalization. Any matters that are not historical facts are forward-looking
and, accordingly, involve estimates, assumptions and uncertainties. There is
no assurance that Apache's expectations will be realized, and actual results
may differ materially from those expressed in the forward-looking statements.
Listen to a live webcast of Apache's third quarter conference call at 1 PM
Houston time on Thursday, Oct. 28, by going to
videonewswire.com If you are unable to participate
during the live webcast, the call will be archived at the same web site. |
