U.S. energy firm
) reported strong third quarter earnings on the back of increased
liquids volume and higher crude prices.
APACHE CORP (APA): Free Stock Analysis Report
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Earnings per share - excluding one-time items - came in at $2.32,
above the Zacks Consensus Estimate of $2.17 and the year-ago
adjusted profit of $2.16.
However, revenues of $4,019.0 million were down 3.8% from the
year-ago quarter and were also lower than the Zacks Consensus
Estimate of $4,354.0 million. The underperformance reflects lower
natural gas output.
The production of oil and natural gas averaged 784,331
oil-equivalent barrels per day (BOE/d) (54% liquids), up
approximately 1.8% year over year. Apache's production for oil
and natural gas liquids (NGLs) was up roughly 8.8% at 425,097
barrels per day (Bbl/d), while natural gas production of 2,155.4
million cubic feet per day (MMcf/d) was down 5.5% from the third
quarter 2012 level.
Apache's upstream growth momentum is retained organically as well
as through acquisitions as it continues to explore the extensive,
multi-year inventory of drillable locations in the Permian and
Anadarko basins of North America.
The average realized crude oil price during the third quarter was
$107.50 per barrel, representing an increase of 4.8% from the
year-ago realization of $102.62. The average realized natural gas
price during the Sep quarter of 2013 was $3.49 per thousand cubic
feet (Mcf), down 7.2% from the year-ago period.
Apache's lease operating expenses totaled $819.0 million, up 2.3%
from $801.0 million in the year-ago quarter.
Balance Sheet & Capital Spending
As of Sep 30, 2013, Apache had approximately $1,251.0 million in
cash and cash equivalents. The company had a long-term debt of
$10,868.0 million, representing a debt-to-capitalization ratio of
During the three months ended Sep 30, 2013, Apache's capital
investments (excluding acquisitions) totaled $2,916.0 million.
Zacks Rank & Stock Picks
Apache currently retains a Zacks Rank #3 (Hold), implying that it
is expected to perform in line with the broader U.S. equity
market over the next one to three months.
Meanwhile, one can look at
Matador Resources Co.
SM Energy Co.
Northern Oil & Gas Inc.
) as good buying opportunities. These U.S. upstream energy
operators - sporting a Zacks Rank #1 (Strong Buy) - have solid
secular growth stories with potential to rise significantly from