Apache’s 1Q16 production
Apache Corporation’s (APA) pro forma production volume in 1Q16 was 479,000 barrels of oil equivalent per day (Mboepd), excluding Egypt’s non-controlling interest and tax barrels. This represents a fall of ~20% year-over-year. Sequentially, this represents a fall of 2%.
Apache’s North American onshore production averaged 298 Mboepd, above its 1Q16 guidance of 290–295 Mboepd. Apache raised its 2016 North American onshore production guidance range to 268–278 Mboepd, compared to the previous guidance range of 263–273 Mboepd it had provided in its 4Q15 earnings.
APA’s international and offshore production for 2016 is projected to be 170–180 Mboepd. Total pro forma production is projected to range between 438 and 458 Mboepd.
Whiting Petroleum (WLL), by comparison, has provided 2016 production growth guidance of -18% at the midpoint, and Oasis Petroleum (OAS) has provided growth guidance of -6% at the midpoint. On the other hand, PDC Energy (PDCE) expects its annual production to rise by 30%–40% in 2016. All these companies together make up ~8.7% of the iShares U.S. Oil & Gas Exploration & Production ETF (IEO).
Together, these companies make up ~8.7% of the iShares U.S. Oil & Gas Exploration & Production ETF (IEO).
APA’s 1Q16 realized prices and cost efficiencies
APA’s realized crude oil price (USO) in 1Q16 averaged $31.51 per barrel, which was ~34% lower than its realized crude oil price in 1Q15. Its realized natural gas price averaged $2.15 per thousand cubic feet, 26.6% lower than its realized natural gas price in 1Q15.
Its realized natural gas liquids price averaged $7.16 per barrel, 39% lower than its realized natural gas liquids price in 1Q15.
APA’s capex guidance and cost efficiencies
APA’s 1Q16 capex (capital expenditure) was $466 million, lower than its guidance of $500 million–$550 million. APA provided a 2016 capex budget of $1.4 billion–$1.8 billion, 60% lower than its 2015 capex budget.
Approximately 45% of APA’s 2016 budget will be allocated to its North American onshore operations. The remaining 55% of the budget will be allocated to its international and offshore operations. Lease operating expenses in 1Q16 fell 21% to $7.81 per barrel of oil equivalent compared to 1Q15.