$APC Sees Oil Industry Improving; Projects Oil Production to Be Flat Over Last Year

APC has rallied quite a bit from the lows, but not today.

Naturally, they’re talking their book, as you would expect. But I find it fascinating, that on call after call, these oil companies are reporting record oil production levels. What happened to the theory that low prices would force production offline? The only lines being created in the oil patch are of the unemployment varietal. These companies have not stopped producing. Clearly, the pain hasn’t been maximized.

Notes via Briefing:

Company believes they will continue to see improvement of commodity prices with near term volatility.

Oil industry is in a ‘much better’ place than it was in at the end of last quarter.

Continue to see a ‘pretty strong’ interest from people looking to buy property from APC.

$700 mln of divestitures in Q2 expected. They will update cash and volume impacts once completed.

Company does not expect to increase capital budget in 2016, even if oil prices were to rise above $50/barrel.

Co has reduced cost per well ‘pretty significantly’ over the last quarter.

Believe they will be flat Y/Y on oil volumes.