Apache Corporation capitalizes on shorter completion cycles in the U.S.
HOUSTON -- Apache reported earnings of $124 million, or $0.32 per share. Net cash provided by operating activities in the quarter was $615 million. Before working capital changes, Apache generated $799 million in operating cash flow. Adjusted earnings before interest, taxes, depreciation, depletion, amortization and exploration expenses (adjusted EBITDAX) was $1.1 billion.
John J. Christmann IV, Apache's CEO and president, said, “During the first quarter, Apache delivered strong operational results and U.S. production significantly above guidance. Outperformance in the United States was driven by a combination of shorter completion cycle times, improving efficiencies and excellent performance from new wells.
Highlights from the company’s three principal areas include:
United States – U.S. production averaged 232,000 boed, exceeding guidance by 9,000 boed. The company averaged 17 rigs and drilled and completed 60 gross-operated wells. Apache delivered record Permian basin production of 183,000 boed, with oil up 14% and total production up 24% year-over-year.
Egypt – Apache averaged 14 rigs during the quarter and drilled and completed 28 gross-operated wells with an 86% success rate. During the quarter, Apache completed seven wells with 24-hr IP rates exceeding 1,000 boed. The company has completed approximately 20% of its 2.6-million-acre, high-resolution, high-density 3D seismic survey in the Western Desert, which it believes will uncover impactful oil growth opportunities on its newly awarded concessions and legacy acreage.
North Sea – Apache averaged three rigs during the quarter and produced 54,000 boed. The company announced a significant discovery at the Garten prospect in the Beryl area, which encountered more than 700 ft of net oil pay in stacked, high-quality, Jurassic-aged sandstone reservoirs. The recoverable resource is expected to exceed 10 MMbl of light oil, which is at the high end of pre-drill estimates.