Apache Corporation (NYSE: APA) stock lost over 7.4% on October 10th, 2017 (Source: Google finance) due to analysts downgrade of the stock. Analysts from Jefferies Group reiterated their “Underperform” rating on the stock which dampened the stock sentiment. Zacks Investment Research also downgraded the stock from a “hold” rating to a “strong sell” rating. The shares of Apache Corporation corrected over 33.1% in this year to date (As of October 11th, 2017; Source: Google finance) hurt by the volatile commodity prices environment.
On the other hand, Sanford C. Bernstein reiterated their Rating of Outperform.
The group delivered second-quarter production of 460,000 barrels of oil equivalent (Boe) per day while the adjusted production reached 388,000 Boe per day, which excludes Egypt noncontrolling interest and tax barrels. They made a strategic exit from Canada, while enhances their leverage to the Permian and revised 2017 guidance. The group finished first appraisal wells in the oil window of the Wolfcamp formation at Alpine High, offering further confirmation of an oil play and supporting hundreds of additional drilling locations.
The group operated an average of 35 rigs during the second quarter of 2017 while drilled and finished 66 gross-operated wells worldwide. The group’s North American production reached 244,000 Boe per day, while Apache averaged 18 rigs and drilled and finished 36 gross-operated wells. Their Permian Basin Production averaged 146,000 Boe per day, while Apache operated an average of 17 rigs during the quarter.
The group’s North Sea reported an average production of 55,000 Boe per day and averaged four rigs during the quarter. Their Egypt production reached 89,000 Boe per day while the firm averaged 13 rigs and drilled and finished 25 gross-operated wells during the quarter including two high-rate exploration wells in the Matruh Basin, which de-risked additional exploration prospects in the area.
The group invested Oil and gas capital of $738 million during the quarter wherein two-thirds was for Permian Basin. They had $1.7 billion of cash, which an increase against $1.5 billion at the end of the first quarter of 2017.