Apache Reports First-Quarter Results
OREANDA-NEWS. May 16, 2013. Apache Corporation (NYSE, Nasdaq: APA) reported first-quarter earnings of USD 698 million, or USD 1.76 per diluted common share, and adjusted earnings, which exclude certain items that impact the comparability of operating results, of USD 806 million or USD 2.02 per share.
During the first quarter, worldwide production increased to 781,819 barrels of oil equivalent (boe) per day driven by a 45 percent increase in North American onshore liquid hydrocarbons output compared with the year-earlier period; earnings declined as a result of lower commodity prices. Cash from operations before changes in operating assets and liabilities totaled USD 2.4 billion.
Apache also announced a plan to divest USD 4 billion in assets by year-end 2013. The company intends to use initial proceeds of USD 2 billion to reduce debt and enhance financial flexibility.
Additional proceeds are intended to be used to repurchase approximately USD 2 billion of Apache common shares under a 30-million-share repurchase program authorized by the Board of Directors.
G. Steven Farris, Apache's chairman and chief executive officer, said, "We are showing strong results from the strategic shift that we outlined in 2012, with production from onshore North American liquids plays of 165,000 barrels per day in the first quarter. We expect our onshore drilling programs will continue to contribute significantly to meeting our production targets."
Farris added, "This rationalization of our asset base flows naturally from more than USD16 billion of acquisitions over the last three years. Our goal is to ensure that Apache's portfolio has the right mix of assets to generate attractive rates of return, drive production growth, and create shareholder value.
"In this vein, our Board and management team conducted a strategic portfolio review to identify assets that no longer fit our growth profile," Farris said. "Based on this review, we have a process well under way to divest non-core assets while retaining those that drive long-term growth and generate cash from operations. We are also pursuing other monetizations including joint venture partnerships.
"Proceeds from this program will enable us to reduce debt and repurchase up to 30 million shares or approximately 7.5 percent of shares outstanding," Farris said. "We believe that as a result of this process, we will become an even stronger company with a focused portfolio of high-growth, high-return assets."
Agreements pertaining to asset sales and monetizations are subject to market conditions including commodity prices. Apache's annual production guidance will not be adjusted until it enters into definitive agreements with potential acquirers or joint venture partners.
The timing and actual number of shares repurchased will depend on a variety of factors including the stock price, corporate and regulatory requirements and other market and economic conditions. Repurchased shares would be available for general corporate purposes.
Комментарии