Apache says cost-cutting measures helped offset low oil prices
Nov 3 (Reuters) – Oil and gas producer Apache Corp reported a smaller-than-expected quarterly loss as the company’s cost-cutting measures helped offset weak oil prices.
The company, which said in August that it had taken a conservative budgeting approach, said total costs and expenses fell 60.3 per cent in the third quarter ended Sept. 30.
Total costs and expenses in the latest quarter included impairments of $836 million, compared with $3.90 billion a year earlier.
The company said on Thursday it expected to end 2016 at the high end of its North America onshore production forecast range, but was tracking in line with its spending estimate of $2 billion.
Apache said it plans to add three rigs in the Midland Basin, located in the Permian Basin, in the fourth quarter.
U.S. oil drillers have been putting more rigs back to work, as crude prices mostly held over $50 per barrel in October.
The Houston-based company’s net loss attributable to shareholders narrowed to $607 million, or $1.60 per share, from $4.14 billion, or $10.95 per share, a year earlier.
The company’s adjusted loss was 3 cents per share under a new accounting method it adopted in the second quarter. Analysts on average had expected a loss of 14 cents per share, according to Thomson Reuters I/B/E/S.
Total revenue fell 5.8 per cent to $1.44 billion, but topped estimate of $1.39 billion.
(Reporting by Arathy S Nair in Bengaluru; Editing by Sriraj Kalluvila)