23.42 +0.01 (0.04%)
After hours: 5:23PM EST
|Bid||23.39 x 4000|
|Ask||23.69 x 1800|
|Day's range||23.02 - 23.60|
|52-week range||19.44 - 38.12|
|Beta (3Y monthly)||1.87|
|PE ratio (TTM)||N/A|
|Earnings date||30 Oct 2019|
|Forward dividend & yield||1.00 (4.31%)|
|1y target est||27.16|
US shale producers are cutting spending for the second year in a row as companies are caving in to investor demand to maintain a strict capital expenditure discipline
WPX Energy's (WPX) Q3 earnings miss expectation. Strong production from Delaware and Williston basins allows the company to raise total production forecast for 2019.
Benchmarks closed in the green on Wednesday as the Federal Reserve cut rates for the third time this year, and Chairman Jerome Powell signaled no rate hikes until he witness a "really significant" rise in inflation.
During the earnings release, Apache (APA) informed that it has started a strategic operational reorganization that is expected to result in savings of at least $150 million.
Apache (APA) delivered earnings and revenue surprises of -7.41% and 3.36%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
HOUSTON, Oct. 30, 2019 -- Altus Midstream Company (NASDAQ: ALTM) today announced third-quarter 2019 financial and operational results on its website at.
Apache Corporation (NYSE, Nasdaq: APA) today announced third-quarter 2019 financial and operational results on its website at www.apachecorp.com or investor.apachecorp.com as well as on Twitter (@ApacheCorp). Apache Corporation is an oil and gas exploration and production company with operations in the United States, Egypt and the United Kingdom.
Lower commodity prices and demand for energy products are expected to have affected oil and gas stocks' earnings in the third quarter of 2019.
(Bloomberg) -- It was just a year ago that Tom Loughrey tried pitching a fund to bet against shale producers.“I was basically kicked out of every office in New York City,” Loughrey said.In the months since, an exchange-traded fund that tracks oil drillers has lost half its value, shale production growth has slowed, funding has gotten scarce and more than two dozen companies have collapsed into bankruptcy.Things have changed for Loughrey, too. The 43-year-old former hedge fund manager no longer looks to invest the money himself. He ditched the fund and teamed with Michael Friezo, an ex-Credit Suisse Group investment banker who once gave him a job. They formed Chapel Hill, North Carolina-based Friezo Loughrey Oil Well Partners LLC, or FLOW, to advise others.Loughrey’s sweet spot is the gap between expectation and reality when it comes to drillers’ projections of what their wells will actually produce. He uses data number-crunched from state records and applies assumptions he says are more realistic than those offered by companies in investor presentations.As the shale boom decelerates, other data shops are selling similar services. They include Enverus, formerly known as Drillinginfo Inc., RS Energy and Rystad Energy.‘Rosy View’“Independent, unbiased analysis can shed a light of truth on management projections,” said Nick Volkmer, RS Energy’s vice president of intelligence. “It’s well-known that management teams are often compensated for production and reserves growth, incentivizing optimism and a rosy view of the future.”Read more: How U.S. Oil Output Went From Explosive to SluggishOne of Loughrey’s favorite targets is Apache Corp. and its flagship Alpine High oil discovery in West Texas.Others have criticized Apache’s little-drilled corner of the Permian Basin because it promises more liquids-rich gas than the preferred, more expensive oil.Apache touts a typical well there that would ultimately recover a stew of hydrocarbons that’s, at most, 15% oil.Loughrey, however, says that in some places, Apache’s projections are about 80% too high.“I think there should be a brouhaha about this,” Loughrey said.Apache said it hasn’t reviewed Loughrey’s methodology and his work may include “exploratory wells” and “concept tests” that aren’t meant to optimize the company’s projections. The number Apache used in its most recent Alpine High presentation was initially published in October 2017, before the company had fracked any multi-well development pads, spokesman Phil West said in an email.After drilling “a handful of large, multi-well, multi-zone pads at Alpine High,” the company is evaluating the play’s performance, West said. In the meantime, Apache suspended some activity there in response to low commodity prices.Investors have largely written off Alpine High since Apache announced it three years ago. The company’s stock is down more than 60%, and a pipeline entity that serves the patch has lost three-quarters of its market value since it was spun off from Apache last year. The geologist credited with the Alpine High resigned last week, sending shares and bonds plummeting.There’s MoreLoughrey warns there are other companies that face a reckoning once their reserve estimates fail to pan out.“Shale wells make money,” Loughrey said. “It’s a question of if the stocks will make you money.”Data analysts working the shale patch can thank a quirk in federal oversight for their ability to build businesses based on providing investors with outside data.The Securities and Exchange Commission sets strict criteria for what holdings oil companies can report as “proved reserves.” But forecasts pitched in press releases and investor presentations aren’t subject to the same restraints. Instead, explorers like to publicize so-called EURs, or estimated ultimate recoveries.“That’s basically a petroleum-engineering term that means that, with all the data, what the well will ultimately recover,” said Dean Rietz, chief executive officer of reservoir engineering firm Ryder Scott Co. “But none of it may be reserves.”Instead, those projections include “contingent resources” that can’t be profitably pumped under current conditions.Optimistic expectations are compounded by assumptions about how close wells can be drilled to one another. Newer wells, called “child wells,” can sometimes interfere with output from the “parent well,” diminishing profits. But the risk of drilling them too far apart means leaving crude underground.Diminished OutputIt’s a problem that’s worried even some of the industry’s bigger players. Concho Resources Inc. revised down its production goals for the year after it drilled 23 wells too close together. Earlier this year, Diamondback Energy Inc. CEO Travis Stice said producers should do a better job of representing the problem of diminished output due to parent and child wells in their forecasts.Counting on companies to alter the way they pitch growth is probably a “lost cause,” said Kevin Kaiser, a consultant who successfully bet against some of the biggest names in the pipeline industry.The warning that drillers routinely cram single-spaced on the first slide of a company presentation to investors is considered by the SEC sufficient enough that the next hour of line graphs and bullet points is essentially wishful thinking.Allowing producers to advertise oil and gas reserves that aren’t proved is meant “to enable companies to provide investors with more insight,” the SEC said in 2008.Companies are required by law to report well results to state regulators, but often that data is difficult to find and hard to aggregate. As Loughrey puts it: “It’s like a bunch of dusty old phone books.”That gives Loughrey an edge when it comes to analyzing oil producers.“They’re losing money every year,” Loughrey said. “There’s something wrong with this.”To contact the reporter on this story: Rachel Adams-Heard in Houston at firstname.lastname@example.orgTo contact the editors responsible for this story: Simon Casey at email@example.com, Bob Ivry, Joe CarrollFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- The high-profile geologist leading one of Apache Corp.’s most-important exploration ventures has stepped down. The company’s shares and bonds tumbled, and the cost to insure against default surged.Steven Keenan, Apache’s senior vice president of worldwide exploration, resigned two days ago, company spokesman Phil West said in an email on Friday. The geologist’s departure may fuel concerns about the fate of Apache’s search for crude in Suriname, adjacent to an Exxon Mobil Corp. discovery that’s one of the world’s biggest finds in years.“Mr. Keenan’s resignation is not connected to Suriname,” West said. “The drill bit is still above the first target zone in the Suriname well.”’Apache may provide an update on the progress of its exploratory efforts across the 1.4-million-acre offshore tract known as Block 58 as soon as Oct. 30, when the Houston-based company is scheduled to report third-quarter results.The shares fell as much as 11% on Friday for the biggest intraday drop since January 2016. The stock was down 5.6% to $21.93 at 1:34 p.m.The cost to insure against an Apache default jumped to the highest since August 2016. Five-year credit-default swaps tied to the company were among the worst performers in the investment-grade CDS market, widening to as much as 31 basis points on a day when the overall market tightened by 1.2 basis points.‘Investment Case’The yield on Apache’s most actively traded bond, 4.375% notes that mature in 2028, widened by 21 basis points, according to Trace, and were among the most actively traded notes in the investment-grade market.As recently as last week, Bank of America Merrill Lynch touted the Suriname prospect as potentially game-changing for Apache.It “has potential to reset the investment case,” Merrill Lynch’s veteran oil-industry analyst Doug Leggate said in an Oct. 18 note to clients. On the strength of that thesis, Leggate upgraded his rating on the stock and said a single good well could translate into a $6-a-share benefit for Apache.Keenan was hand-picked by Apache’s then-Chief Executive Officer Steve Farris in 2014 to replicate the dramatic discoveries he oversaw for EOG Resources Inc. in the Eagle Ford shale basin in South Texas.Not long after he joined Apache, the company announced its Alpine High discovery in a little-drilled corner of the Permian Basin in West Texas. At the time, the company said the play held 3 billion barrels of crude and 75 trillion cubic feet of gas.But Apache’s stock has underperformed rival producers since it first touted the Alpine High find, which turned out to be far richer in gas than more valuable crude.(Adds timing of exploration chief’s departure in second paragraph)\--With assistance from Kriti Gupta and Elizabeth Rembert.To contact the reporter on this story: Rachel Adams-Heard in Houston at firstname.lastname@example.orgTo contact the editors responsible for this story: Simon Casey at email@example.com, Joe Carroll, Carlos CaminadaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Delays in the Midland/Delaware Basins as well as in natural gas production from the Alpine High play might have prompted Apache (APA) to trim volumes from the play.
Apache (APA) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Statistically speaking, long term investing is a profitable endeavour. But along the way some stocks are going to...
HOUSTON, Oct. 16, 2019 -- Altus Midstream Company (Nasdaq: ALTM) (“Altus”) will host its third-quarter 2019 results conference call Thursday, Oct. 31, 2019, at 1 p.m. Central.
HOUSTON, Oct. 16, 2019 -- Apache Corporation (NYSE, NASDAQ: APA) today provided supplemental information regarding certain third-quarter 2019 financial and operational results..
(Bloomberg) -- The prospect of Elizabeth Warren becoming the 2020 Democratic presidential nominee, or the 46th president of the U.S., has energy investors worrying about risks to hydraulic fracturing.“What happens if Elizabeth Warren becomes president and bans fraccing?” was the most common question Sanford C. Bernstein received during recent marketing, analysts led by Bob Brackett said in note Tuesday. They don’t currently have a good answer.Concern on Wall Street has been rising along with Warren’s poll numbers, with sectors such as financials, health care and industrials as well as energy identified among those at risk from her policy proposals.In early September, Warren tweeted that she would ban fracking “everywhere” if she becomes president:READ MORE: The 2020 Democrats Agree on 7 Ways to Fight Climate ChangeThe former part of Warren’s plan would have a modest longer-term impact given the “mature state” of areas such as onshore Alaska or the federal Gulf of Mexico, according to Bernstein. However, a fracking ban would offer “much more immediate consequences,” and be “incredibly bullish for both global oil prices and U.S. natural gas prices.”Federal leasing changes could have the most impact on shale drillers such as EOG Resources Inc. and Devon Energy Corp., Brackett said. Kosmos Energy, Hess Corp., Apache Corp. and ConocoPhillips may have little to worry about from a fracking ban, however.Still, any impact from a Warren win may be short-lived. “We have a government with checks and balances,” Brackett noted, pointing to processes which have caused executive orders to be moderated. He also highlighted the ability of E&Ps to re-allocate capital to mitigate effects.And, as RBC Capital Markets wrote earlier this week, most of the sectors seen to be at high risk “are already deeply undervalued versus the broader market.”Canada ImplicationsThere may also be some beneficiaries. UBS analyst Lloyd Byrne recently identified Canadian producers such as Canadian Natural Resources Ltd. and Suncor Energy Inc. as likely to gain from curbs on drilling in U.S. federal acreage.Though at least one investment bank isn’t so certain Canada’s oil-patch will benefit from a Warren victory, given her and fellow presidential candidate Bernie Sanders haven’t been so friendly on their stance for pipeline projects. Energy investment bank Tudor Pickering Holt & Co. cited Warren’s opposition to Enbridge Inc.’s Line 3 oil pipeline replacement and expansion project, along with the mention of permits being revoked for TC Energy Corp.’s long-delayed Keystone XL oil pipeline.Also, Sanders is opposed to Enbridge’s Line 5 pipeline. “We’d caution the enthusiasm,” analysts from Tudor told clients in a note Wednesday.(Updates section on Canadian energy impact, adds tweet)To contact the reporter on this story: Michael Bellusci in Toronto at firstname.lastname@example.orgTo contact the editors responsible for this story: Brad Olesen at email@example.com, Morwenna Coniam, Jeremy R. CookeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Kinder Morgan's (KMI) Gulf Coast Express Pipeline is expected to boost natural gas shipping capacity in the Permian Basin, which has been suffering from takeaway limitations.