3Q17 operational update
Apache’s (APA) North American production totaled 231 Mboepd (thousand barrels per day) in 3Q17, while its adjusted production (excluding Canadian production) averaged 207 Mboepd.
In June 2017, APA announced that it had decided to sell its Canadian oil assets to Cardinal Energy. The transaction was valued at 330 million Canadian dollars, or about $244 million.
While APA’s North America production was lower both YoY (year-over-year) and sequentially, the company reported an 8% rise in its oil production in the region over 2Q17. This was attributed to its strong Midland Basin program and production ramp at Alpine High.
The Permian Basin update
Production in the Permian Basin in 3Q17 averaged 161Mboepd, which represents an 11% rise over 2Q17. Oil production growth was 8% sequentially, rising to 78,000 barrels of oil per day.
In its 3Q17 earnings conference, APA’s management stated: “The third quarter was important for Apache as it marked our strategic exit from Canada, the very early stage acceleration of production at Alpine High and a significant turn in our Permian Basin oil production.”
North America production guidance update
Due to disruptions from Hurricane Harvey, APA updated its third and fourth quarter production guidance. Apache’s North America production guidance for its 4Q17 production was updated to 218 Mboepd–224 Mboepd, compared with its previous guidance of 225Mboepd–237 Mboepd.