Apache Had Upbeat 3Q17 Earnings and Revenue



Apache’s 3Q17 revenue

On November 2, 2017, Apache (APA) reported its 3Q17 earnings. Apache reported revenue of ~$1.6 billion—higher than analysts’ consensus estimates of ~$1.4 billion.

In comparison, Apache’s 3Q16 revenue was ~$1.44 billion, while its revenue was ~$1.38 billion in 2Q17.

As you can see in the above graph, Apache’s revenue was higher on a year-over-year and sequential basis. Its revenue was mainly higher due to a gain on divestitures of $296 million.

The higher revenue was also supported by higher realized prices. The average realized price of crude oil (UCO) increased from $44.35 per barrel in 3Q16 and $46.89 per barrel in 2Q17 to $49.34 per barrel in 3Q17. Apache’s average realized price for natural gas (UNG) rose from $2.59 per Mcf (thousand cubic feet) in 3Q16 and $2.60 per Mcf in 2Q17 to $2.75 per Mcf in 3Q17. Finally, the average realized price for natural gas liquids rose from $9.97 per barrel in 3Q16 and $13.03 per barrel in 2Q17 to $16.38 per barrel in 3Q17.

Apache’s 3Q17 EPS

Apache reported an adjusted EPS (earnings per share) of $0.04 in 3Q17—compared to an estimate of $0.00. In 3Q16, Apache reported EPS of -$0.03. In the previous quarter, Apache reported EPS of -$0.21. Like its revenue, Apache’s earnings were higher than expected. Its earnings were higher on an annual and sequential basis.

Peer comparison

Apache’s peers Anadarko Petroleum (APC) and Whiting Petroleum (WLL) announced 3Q17 EPS of -$0.77 and -$0.14, respectively. To learn more about their 3Q17 performance, read Anadarko Petroleum’s 3Q17 Earnings Miss Estimates, Again and How Whiting Petroleum Stock Reacted to 3Q17 Earnings Beat.

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