Upcoming earnings release and estimates
Apache (APA) is expected to release its 4Q16 earnings before the market opens on February 23, 2017.
Apache’s 4Q16 revenue estimate is ~$1.5 billion, ~20% higher than its 4Q15 revenue. Compared to 3Q16, APA’s 4Q16 estimate is 5% higher.
As we can see in the graph above, Apache’s revenue has beaten estimates in the past two quarters. Investors should watch carefully to see how things pan out for the upstream company in 4Q16—especially on expectations of higher realized prices due to improving energy prices (USO) (UNG).
Apache’s 4Q16 EPS estimate
Apache’s 4Q16 EPS (earnings per share) estimate is $0.10—a positive number for the first time in 2016. Its 3Q16 EPS were -$0.03. The corresponding quarter’s EPS were -$0.06 in 2015.
Apache’s peers Continental Resources (CLR) and Newfield Exploration (NFX) are expected to report EPS of -$0.10 and $0.35, respectively, in 4Q16. All these companies make up a combined 6% of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).
Like its revenue, APA’s earnings have also come in better than analysts’ estimates in recent quarters.
Key highlights in 2016
On September 7, 2016, Apache announced a major oil discovery in the Delaware Basin: Alpine High, located in the southern portion of the basin. APA estimates that its acreage holds ~3 billion barrels of oil in the Barnett and Woodford regions and ~75 Tcf (trillion cubic feet) of rich gas.
APA’s increased focus in the Permian, along with its Alpine High discovery in the Delaware Basin within the larger Permian Basin, could be a game-changer for the company this year.
Read Will Apache’s Alpine High Discovery Help the Stock in 2017? to know more.