Apache Corp Earnings Cheat Sheet: Profit Rises by Double-Figures for Fifth Consecutive Quarter

S&P 500 (NYSE:SPY) component Apache Corporation (NYSE:APA) reported higher profit for the third quarter as revenue showed growth. Apache is an energy company that explores for, develops, and produces natural gas, crude oil, and natural gas liquids in six countries.

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Apache Earnings Cheat Sheet for the Third Quarter

Results: Net income for the independent oil and gas company rose to $1 billion ($2.50 per share) vs. $778.3 million ($2.12 per share) in the same quarter a year earlier. This marks a rise of 28.7% from the year earlier quarter.

Revenue: Rose 43.7% to $4.33 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: APA reported adjusted net income of $2.95 per share. By that measure, the company beat the mean estimate of $2.82 per share. It beat the average revenue estimate of $4.21 billion.

Quoting Management: “Apache had a very productive quarter, both in operations and commercial activity,” said G. Steven Farris, chairman and chief executive officer. “For the sixth consecutive quarter, we achieved record daily production on an equivalent basis. We’ve commenced development of the Balnaves oil field offshore Western Australia. We’ve extended the productive range of our holdings in Egypt’s remote Western Desert with new producers in the Faghur Basin. We continue to drill from the extensive, multiyear inventory of drillable locations we have developed in the Permian, Central, Gulf of Mexico and Canadian regions of North America. Domestically, the recent focus has obviously been on higher-margin oil and liquids-rich opportunities. This operational flexibility is a competitive advantage of Apache’s portfolio model.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 40%, with the biggest boost coming in the first quarter when revenue rose 46.8% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 46.4% and in the first quarter, the figure rose 60.9%.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 13 cents in the second quarter and by 26 cents in the first quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from $3.07 a share to $2.73 over the last ninety days. At $11.79 per share, the average estimate for the fiscal year has fallen from $12.16 ninety days ago.

Competitors to Watch: EOG Resources, Inc. (NYSE:EOG), Chevron Corporation (NYSE:CVX), EnCana Corporation (NYSE:ECA), Chesapeake Energy Corp. (NYSE:CHK), Stone Energy Corporation (NYSE:SGY), Lucas Energy, Inc. (AMEX:LEI), Concho Resources Inc. (NYSE:CXO), Anadarko Petroleum Corp. (NYSE:APC), Noble Energy, Inc. (NYSE:NBL), and Gulfport Energy Corp. (NASDAQ:GPOR).

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(Source: Xignite Financials)

 

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