A Review of the Nigerian Energy Industry

Apache profit tumbles 66% in Q1

apache11 May 2014, News Wires -US independent Apache reported a two-thirds fall in net income in the first quarter due to asset sales made in the past year in the US Gulf of Mexico shallow-water and Argentina.

The Houston-based outfit earned $236 million from 1 January to 31 March, down 66% on the $698 million earned in the same period of 2013.

Apache said that the bulk of the drop could be attributed to $517 million in income from discontinued operations in Argentina.

Revenues declined from $3.19 billion to $2.81 billion over the same timeframe.

Chief executive Steven Farris said that the Permian was continuing to deliver results for the company, adding that North American onshore liquids output was up 21% compared to this time last year at 198,500 barrels per day.

Total worldwide net daily production of oil, natural gas and natural gas liquids averaged just under 640,000 boe per day, a fall of around 100,000 boepd on the prior year output of 738,000 boepd.

Last July Apache sold its shallow-water US Gulf operations to Riverstone Holdings-backed Fieldwood Energy for $3.75 billion, while in February of this year it moved to exit Argentina in an $800 million sale to YPF.

Earlier on Thursday, it emerged that Apache sold minority stakes in a pair of Anadarko-operated fields and 11 exploration blocks in the US deep-water Gulf to Freeport-McMoRan for $1.4 billion.


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