Credit: Shutterstock photoU.S. energy firm Apache Corp. ( APA ) reported in-line second-quarter 2013 results on the back of increased liquids volume and natural gas prices.
Earnings per share - excluding one-time items - came in at $2.01, matching the Zacks Consensus Estimate.
However, the company's per share adjusted profits came lower than the second quarter 2012 level of $2.07 amid higher lease operating expenses.
Revenues of $4,383.0 million were up 10.4% from the year-ago quarter and were also higher than the Zacks Consensus Estimate of $4,265.0 million.
Operational Performance
The production of oil and natural gas averaged 789,811 oil-equivalent barrels per day (BOE/d) (54% liquids), up approximately 2.0% year over year. Apache's production for oil and natural gas liquids (NGLs) was up roughly 9.6% at 425,859 barrels per day (Bbl/d), while natural gas production of 2,183.7 million cubic feet per day (MMcf/d) was down 5.7% from the second-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 second quarter was $97.93 per barrel, essentially flat with the year-ago realization of $97.66. The average realized natural gas price during the Jun quarter of 2013 was $3.87 per thousand cubic feet (Mcf), up 10.3% from the year-ago period.
Apache's lease operating expenses totaled $829.0 million, up 17.8% from $704.0 million in the year-ago quarter.
Balance Sheet & Capital Spending
As of Jun 30, 2013, Apache had approximately $184.0 million in cash and cash equivalents. The company had a long-term debt of $12,297.0 million, representing a debt-to-capitalization ratio of 27.3%.
During the three months ended Jun 30, 2013, Apache's capital investments (excluding acquisitions) totaled $2,835.0 million.
Reports Egypt Discoveries
In a separate development, Apache announced seven new oil and gas discoveries in Egypt's Western Desert, building on the integrated energy company's leading position in this hydrocarbon-rich area.
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 Range Resources Corp. ( RRC ), VOC Energy Trust ( VOC ) and Clayton Williams Energy Inc. ( CWEI ) as a good buying opportunity. These North American energy explorers - sporting a Zacks Rank #1 (Strong Buy) - offer tremendous value and are worth buying now.
APACHE CORP (APA): Free Stock Analysis Report
WILLIAMS(C)ENGY (CWEI): Free Stock Analysis Report
RANGE RESOURCES (RRC): Free Stock Analysis Report
VOC ENERGY TRST (VOC): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
