Apache Raises N. American Output Forecast
Oil and gas producer Apache Corp swung to a quarterly profit on higher oil prices, and raised its estimate for production from North America while lowering its cost forecast for the year.
The company's forecast reflects an increasing optimism pervading the U.S. shale oil industry with crude prices on the rise and technology improvements, among other factors, helping companies pump more for less.
Apache on Thursday raised its forecast for production from North America to 256,000-264,000 barrels of oil equivalent per day (boepd) from its earlier estimate of 252,000-263,000 boepd.
The company also lowered its forecast for lease operating expenses to $8.25-$8.75 from $8.50-$9.00.
"We have responded well to the challenges facing the industry over the last two years, successfully realigning our cost structure to ensure profitability at $50 oil," Chief Executive John Christmann said in a statement.
Oil prices began to rise late last year after a two-year slump and have now stabilized at above $50 per barrel, as an OPEC-led production cut and rebounding demand slowly erode a global glut.
Globally-traded Brent averaged $54.69 per barrel in the first three months of the year, up 55 percent from a year earlier.
Apache said it realized $51.20 per barrel of oil in the quarter, up from $31.62, a year earlier.
Net income attributable to Apache's common shareholders was $213 million, or 56 cents per share, in the first quarter ended March 31 compared with a net loss of $372 million, or 98 cents per share, a year earlier.
The company's production fell 11 percent to 481,000 barrels of oil equivalent per day (boepd).
Reporting by Swetha Gopinath
