* Oil and gas output disappoint
* Shares fall 5 percent
* 2nd-qtr profit $2.07/share vs Street view $2.53
By Anna Driver
Aug 2 Apache Corp on Thursday reported a
lower-than-expected quarterly profit as oil and gas output fell
short of Wall Street expectations and weak prices also hurt
The second-quarter results sent Apache's shares down 5
percent in afternoon New York Stock Exchange trading.
The company's oil and gas production rose 3.4 percent to a
record high in the quarter but fell short of Wall Street
estimates. The lower-than-expected output was a factor in the
earnings miss, analysts at Houston energy investment bank
Simmons & Co told clients in a note.
Unexpected downtime in places including the North Sea and
the Gulf of Mexico shelf cost the company 16,000 barrels of oil
equivalent (boe) per day in the quarter, Apache said.
"We had a confluence of things that hit us all in one
quarter which you usually get over the whole years," Steve
Farris, Apache's chief executive officer said on a conference
Worries about the health of the global economy and easing
tensions in the Middle East pushed crude oil prices lower in the
second quarter, while U.S. natural gas prices plummeted from a
year earlier amid bountiful supplies.
The oil and gas producer's second quarter net income was
$337 million, or 86 cents per share, compared with $1.24
billion, or $3.17 per share, in the same quarter a year earlier.
Excluding one-time items, the company earned $2.07 per
share. On that basis, analysts expected $2.53 per share,
according to Thomson Reuters I/B/E/S.
Oil and gas production rose to 774,486 boe per day from
748,519 boe per day a year earlier.
Simmons & Co had estimated Apache's production at 795,000
boe per day, while Barclays expected 785,000 boe per day.
Houston-based Apache received an average of $97.66 per
barrel in the quarter, down 8 percent from a year earlier. The
gas price it received for its production tumbled 35 percent, the
Revenue fell 8 percent to $3.97 billion. Analysts expected
Apache has 3 million acres in the Permian Basin in West
Texas. About 36 rigs are currently running there, and Permian
production increased 5 percent in the second quarter over the
year-ago period, Chief Executive G. Steven Farris said in a
statement on Thursday.
Apache has steadily been acquiring acreage in the Permian
Basin since 1991. The company's position there was substantially
boosted by a 2010 acquisition from BP Plc and its merger
with Mariner Energy.
Shares of Apache fell $4.41 to $82.45 in afternoon New York
Stock Exchange trading.