Newspaper article THE JOURNAL RECORD

Apache Earnings Fall Due to Lower Prices

Newspaper article THE JOURNAL RECORD

Apache Earnings Fall Due to Lower Prices

Article excerpt

HOUSTON (JR) -- Apache Corp. on Thursday reported a sharp drop in net income for the second quarter.

Net income for the quarter totaled $9.2 million, or 9 cents per share, down from $25.7 million, or 29 cents per share, in the prior- year period.

The decline was mainly from sharply lower oil prices.

Houston-based Apache's oil production increased 10,301 barrels per day from second quarter of 1997, but the company realized an average of $13 per barrel for its crude oil sales in the quarter, down 30 percent from $18.44 per barrel in the year-earlier period.

Revenues for the quarter totaled $220.1 million, down from $258.8 million.

Net income for the first six months of 1998 totaled $26.59 million, or 27 cents per share, down from $78.6 million, or 87 cents per share, for the first six months of 1997. Revenues for the first six months of the year totaled $466.07 million, down from $580.67 million a year earlier.

"In planning for 1998 last fall, we anticipated that the Asian financial crisis would reach further than generally thought, pressuring both oil demand and prices," said Raymond Plank, chairman and chief executive officer. "Given that outlook, we have executed strategies this year that have strengthened Apache and our competitive position.

"Our overriding 1998 objective was to build Apache's financial flexibility to be prepared to act on opportunities arising from declining service and acquisition costs," he said. "Drilling costs are falling and the overheated property market of the last several years is giving way to a buyers' market because of low oil and gas prices.

"We're in the boat, shotguns loaded, waiting for some plump ducks to fly over," Plank said. "Our balance sheet could accommodate a $500 million acquisition, should property costs continue to fall."

Apache's debt-to-capitalization ratio is 41 percent, including excess cash and marketable securities, down from 47 percent at the start of the year. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.