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HOUSTON, July 18, 2019 (GLOBE NEWSWIRE) -- Apache Corporation (NYSE, NASDAQ: APA) today announced the completion of asset sales in the midcontinent and provided supplemental information regarding certain second-quarter 2019 financial and operational results.
In May and July, Apache closed the sale of noncore assets in two separate transactions, comprising $612 million of net proceeds, subject to customary closing adjustments. A portion of the proceeds from these asset sales was used to retire $150 million of bonds that matured in early July.
The asset sales reflect the company’s exit from the Western Anadarko Basin and the previously announced exit from the SCOOP/STACK play. Production from the divested assets averaged 33 thousand barrels of oil equivalent (Mboe) per day in the first quarter of 2019, approximately 90 percent of which consisted of natural gas and natural gas liquids. Apache anticipates that it will report production of approximately 32 Mboe per day from the Midcontinent-Gulf Coast region for second-quarter 2019.
Management will update its 2019 production guidance, including the impact of these asset sales, when it reports second-quarter results on July 31, 2019.
Supplemental quarterly information
To further assist analysts with their second-quarter earnings models, the company is providing the following estimates:
|Estimated Average Realized Prices – 2Q19|
|Oil (bbl)||NGL (bbl)||Natural Gas (Mcf)|
|Egypt tax barrels:||23-25 MBoe per day|
|Realized gain on derivatives (before tax):||$13 million|
|Unrealized loss on derivatives (before tax):||$21 million|
|Dry hole costs (before tax)||$20-25 million|
Second-quarter 2019 earnings call
Apache Corporation will host its second-quarter 2019 results conference call on Thursday, August 1, 2019, at 10 a.m. Central time. The company will issue its earnings release after the market close on Wednesday, July 31. The full text of the release will be available on the company's website at www.apachecorp.com. The conference call will be webcast from Apache's website at www.apachecorp.com and investor.apachecorp.com, and the webcast replay will be archived there as well. The conference call will also be available for playback by telephone for one week beginning at approximately 4 p.m. Central time, August 1. To access the telephone playback, dial (855) 859-2056 or (404) 537-3406 for international calls. The conference access code is 7693326.
Apache Corporation is an oil and gas exploration and production company with operations in the United States, Egypt and the United Kingdom. Apache posts announcements, operational updates, investor information and copies of all press releases on its website, www.apachecorp.com, and on its Media and Investor Center mobile app.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “guidance,” “outlook,” “projects,” “will,” and similar references to future periods. These statements include, but are not limited to, statements about future plans, expectations and objectives for Apache’s operations, including statements about our capital plans, drilling plans, production expectations, asset sales, and monetization. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See "Risk Factors" in our 2018 Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) for a discussion of risk factors that affect our business. Any forward-looking statement made by us in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development or otherwise, except as may be required by law.
Investor: (281) 302-2286 Gary Clark
Media: (713) 296-7276 Phil West