Apache Corp. (NYSE: APA) said a recent rally in oil prices coupled with lower production costs had created a “better investment environment,” signaling that it may ramp up spending.
The company, which also reported a smaller-than-expected quarterly loss, raised its full year production forecast by 5,000 barrels of oil equivalent per day (boe/d), while maintaining its 2016 capital spending of $1.4 billion-$1.8 billion.
“As we become more confident in the sustainability of higher oil prices and the resulting increase in cash flow relative to our $35-per-barrel plan, we will increase our capital investment program accordingly,” Chief Executive John Christmann said May 5.
Total revenue fell more than 35 percent to $1.05 billion, missing analysts’ estimate of $1.10 billion.
Apache, which now expects 2016 production of between 438,000 boe/d and 458,000 boe/d, said the majority of additional investment would likely go to the Permian Basin.
Excluding one-time items, the company posted a loss of 40 cents per share, smaller than the average analyst estimate of 89 cents per share, according to Thomson Reuters I/B/E/S.
The company's shares were up 1.2 percent at $51.36 in premarket trading May 5. They have fallen more than 25 percent in the past 12 months.
Recommended Reading
E&P Highlights: March 4, 2024
2024-03-04 - Here’s a roundup of the latest E&P headlines, including a reserves update and new contract awards.
E&P Highlights: March 15, 2024
2024-03-15 - Here’s a roundup of the latest E&P headlines, including a new discovery and offshore contract awards.
E&P Highlights: Feb. 16, 2024
2024-02-19 - From the mobile offshore production unit arriving at the Nong Yao Field offshore Thailand to approval for the Castorone vessel to resume operations, below is a compilation of the latest headlines in the E&P space.
Commentary: The Oil and Gas Future—Believe It or Not
2024-01-10 - If you believe the IEA’s analysis, plenty of oil and gas companies won’t survive very far into the future.
CNOOC Makes 100 MMton Oilfield Discovery in Bohai Sea
2024-03-18 - CNOOC said the Qinhuangdao 27-3 oilfield has been tested to produce approximately 742 bbl/d of oil from a single well.