I want to make this inexorably clear, as evidenced by my incessant reminders. No one is cutting back on producing oil. Apache saw revenues slide 35% for the quarter. They lost nearly $500 million, yet production was up and is going higher.
These companies need the cash flow. They cannot stop drilling.
Again, the narrative that is being told about wells being shut in and production levels tapering off due to the price decline is a fiction. It is a lie made up by the people wearing those big stupid hats in Dallas.
Reports Q1 (Mar) loss of $0.40 per share, excluding non-recurring items, $0.48 better than the Capital IQ Consensus of ($0.88)
Reported first-quarter production of 531,000 barrels of oil equivalent (Boe) per day and pro forma production of 479,000 Boe per day, which excludes Egypt noncontrolling interest and tax barrels
Delivered North American Onshore production of 298,000 Boe per day, above first-quarter guidance of 290,000 to 295,000 Boe per day
Continued to achieve substantial well-cost savings in key North American Onshore plays; now 45% below the 2014 average cost
Invested $466 million of capital, below guidance of $500 to $550 million2016 outlook :
Following strong first-quarter results, the co is raising full-year 2016 North American Onshore production guidance to 268,000 to 278,000 Boe per day, up from initial guidance of 263,000 to 273,000 Boe per day set at the beginning of the year
Accordingly, Apache is also raising full-year 2016 total pro forma production guidance (excluding Egypt noncontrolling interest and tax barrels) by 5,000 Boe per day to 438,000 to 458,000 Boe per day
Total capital investment during the quarter, excluding Egypt noncontrolling interest, was $466 million, which was below the company’s guidance of $500 to $550 million. Apache is reiterating full-year 2016 capital guidance of $1.4 billion to $1.8 billion.
Good luck drilling in Egypt.
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