Is A Beat Likely For Apache (APA) This Earnings Season?
Zacks Investment Research | Feb 20, 2020 09:11PM ET
Apache Corporation (NYSE:APA) is scheduled to release fourth-quarter 2019 results on Wednesday Feb 26, after the closing bell.
The current Zacks Consensus Estimate for the to-be-reported quarter’s loss is pegged at 12 cents per share on revenues of $1.61 billion. There has been no change in estimates for the bottom line over the past seven days.
Against this backdrop, let’s delve into the factors that might have impacted the company’s performance in the December quarter.
Factors at Play
Apache boasts a large geographically diversified reserve base with multi-year trends in reserve replacement. The company’s high-quality drilling inventory with greater resource potential might have enabled it to deliver a decent per share growth rate in the fourth quarter. This, in turn, should have lent its portfolio a higher competitive edge.
On last earnings call, management expected fourth-quarter Permian Basin crude production to be approximately 100,000 BOE/d, indicating a 1.5% improvement from the prior-year reported figure. Regarding the North Sea, third-quarter production was hampered by an annual turnaround maintenance from which, the company expects a substantial recovery in its fourth-quarter production.
The Zacks Estimate for fourth-quarter output is pegged at 475,000 barrels of oil equivalent per day (Boe/d), implying improved results from the prior three quarters’ reported figures.
Moreover, the Zacks Consensus Estimate for fourth-quarter average realized oil price stands at $59 per barrel, indicating a marginal rise from the year-ago reported price of $58.37.
What Does Our Model Say?
The proven Zacks model predicts an earnings beat for Apache this season. The right combination of a positive Zacks Investment Research
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