Apache Corp.

ConocoPhillips’s (COP) total production volume in 2015 was 1,589 Mboe/d excluding Libya. This represents a 5% year-over-year growth after adjusting for asset dispositions and downtime.

Wall Street analysts gave mixed recommendations after Apache’s quarterly results. Apache shares fell 5% on November 6, 2015, after the earnings release.

In the last three months, Abraxas Petroleum (AXAS) has had the highest positive correlation with WTI crude oil among upstream companies that are part of XOP.

The WTI Cushing-WTI Midland spread was at $4.12 per barrel on June 25—compared to $9.7 per barrel on June 18. The spread fell 58% on June 18–25.

The simple moving average (or SMA) is an average of the closing price of a stock over a specified number of periods. The moving average smooths the short-term fluctuations in the stock prices.

On June 11, Argus upgraded Apache stock from “hold” to “buy.” On March 7, UBS initiated coverage on Apache stock with a “sell” rating.

Analysts had expected a drop of 1.5 million barrels (mmbbls) in crude inventories last week. The following parts will cover actual changes in inventories.

Activist investor JANA Partners sold a 20% stake in the firm to Neuberger Berman’s Dyal Capital Partners. Dyal holds a passive interest in JANA Partners.

Differences in crude’s density, sulfur content, and production location can vastly affect the price which it commands on the market.

High market share gives OPEC bargaining power to price oil above a competitive market. It can sway crude oil prices by increasing or decreasing production.

Recent consensus says the production cost of crude oil could range from $20 to $25 per barrel.

To understand the US energy sector, it’s essential first to understand the country’s energy needs. The US uses various energy sources to meet its energy needs.

OPEC (the Organisation of the Petroleum Exporting Countries) aims to “coordinate and unify the petroleum policies of its Member Countries.”

The current implied volatility in Apache’s stock (APA) is ~37.79%. In comparison, the Energy Select Sector SPDR ETF (XLE) has an implied volatility of 17.8%.

In its “Annual Energy Outlook 2018,” the US Energy Information Administration (EIA) has forecast that US tight oil production will mostly increase through early 2040.

In its November Short-Term Energy Outlook (or STEO) report, the EIA forecast that US crude oil production in 2017 would average 9.2 million barrels per day.

The Midland and Delaware Basins, which are sub-basins of the Permian Basin, had the lowest break-even prices.

Whiting Petroleum’s (WLL) implied volatility as of February 22, 2017, was 48.5%, which was ~4.3% lower than its 15-day average of 50.7%.

The EIA and IHS Global have revealed that the average well-drilling and completion costs in major US regions, including the Permian, will likely decline.

On December 13, Callon Petroleum announced that it had agreed to acquire certain acreage positions and oil- and gas-producing properties from Ameredev.

On September 7, 2016, Apache (APA) announced a new resource play, Alpine High, in the Delaware Basin of Texas.

Approximately 33% of analysts rate Apache (APA) a “buy,” and 55% rate it a “hold.” The remaining 12% rate it a “sell.”

The Midland and Delaware basins, which are sub-basins of the Permian, had IRRs of 15% even at sub-$40 oil prices. Apache (APA) has significant operations in both of these basins.

With the recent rally in crude oil prices, Newfield Exploration (NFX) stock has been on an uptrend. On March 1, 2016, it crossed its 50-day moving average for the first time in 2016.

Since July 2011, the S&P 500 Index has gained about 62% and touched its high of 2130 in July 2015. During the same period, gold (GLD) has lost about 92%.

US benchmark WTI crude oil prices averaged at $49 per barrel in 2015. WTI and Brent crude oil prices closed below $40 per barrel in 2015.

OPEC members Nigeria, Libya, and Venezuela have the highest total cost of producing crude oil at $31.6 per barrel, $23.80 per barrel, and $23.50 per barrel.

The operating margin of the US-based (SPY) upstream companies rose by an average of 16%.

Market estimates from Bloomberg suggest that China’s crude oil imports in 2016 may rise by 8% to 7.2 MMbpd (million barrels per day).

On December 11, 2015, Hess was trading 17% below its 200-day moving average, a strong upside resistance for the stock. It has narrowed the gap considerably since October.

Apache’s free cash flow has been mostly negative in the past nine quarters. In 2Q15, it reported FCF of $157 million despite weakness in commodity prices.

Falling oil prices have started to affect energy upstream companies’ revenues. These companies have resorted to cutting costs and focusing on cash flow.

In 2010, US upstream energy companies aggregated $128 billion of total debt. As of 4Q14, this increased to $199 billion of combined debt, a jump of 55%.

Capping the month with a gain of 3.1% since January 30, WTI’s (West Texas Intermediate) increase has been small compared to Brent’s 18% increase.

Denbury Resources primarily extracts oil and gas via carbon dioxide–based enhanced oil recovery (or EOR). This is also called tertiary oil recovery.

ConocoPhillips produces oil and gas via primary or secondary recovery methods. Denbury Resources mainly uses a tertiary, EOR method to produce its oil.

Plains All American Pipeline expects to spend $1.85 in capex in 2015, highlighted by several projects in multiple geographic regions or resource plays.

SandRidge is expanding its low-cost multilateral program and is successfully extending its mid-continent resource base with Chester and Woodford production.

Apache Corporation is planning asset sales of certain of its oil and gas operations. The company is focused on building onshore acreage instead.