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What Is Apache’s Production Guidance for 2016?

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2016 production guidance

Apache’s (APA) North American onshore production is expected to be 268–278 Mboepd (thousand barrels of oil equivalent per day). Its international and offshore production for 2016 is projected to be 170–180 Mboepd. Total pro forma production is projected to be 438–458 Mboepd.

APA plans to ramp up production in 2H17 from its newest Alpine High Discovery. In the second half of 2016, APA plans to install temporary processing capacity in the region. By mid-2017, APA plans to have its in-field gathering and processing infrastructure in place.

The new Alpine High discovery is further expected to strengthen APA’s Permian position, which has been one of APA’s long-term focuses. You can read more about it at Market Realist’s How Alpine High Affects Apache’s Permian Position.

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Apache’s 2Q16 production

Apache’s (APA) 2Q16 pro forma production volumes were 461 Mboepd (thousand barrels of oil equivalent per day). In comparison, 2Q15 production volumes were 564 Mboepd. Apache’s 1Q16 production volumes were 479 Mboepd.

Apache’s North American onshore production averaged 281.9 Mboepd in 2Q16. International and offshore production averaged 253.5 Mboepd in 2Q16. About 52% of its 2Q16 production volumes were made up of oil. About 81% of its total 2Q16 oil and gas revenues were from oil.

Investors will be interested to see if APA’s latest discovery, the Alpine High Resource play, will impact its existing production mix given that the play is believed to be rich in wet gas and oil. APA estimates that its acreage in the Alpine High holds around 3 billion barrels of oil and about 75 Tcf (trillion cubic feet) of rich gas.

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