Apache Registers 128% Net Income Increase in Q2
Independent oil and gas producer Apache has reported that high crude oil and natural gas prices fueled record net income of $1.4 billion, or $4.28 per diluted common share, for the second quarter of 2008, a 128% increase from $632 million, or $1.89 per share, in the prior-year period.
Net income for the first half ended June 30, 2008 increased to $2.46 billion from $1.12 billion in the previous year’s first half. Total revenues for the first half of 2008 were $7.08 billion, compared to $4.47 billion for the same period of 2007.
Cash from operations before changes in operating assets and liabilities totaled $2.3 billion for the second quarter of 2008, compared to $1.5 billion in the prior-year period, and surpassed the record of $1.9 billion set in the fourth quarter of 2007.
Apache’s second quarter production declined 3.6% from the prior-year period and 1% from the first quarter to 551,600 barrels of oil equivalent (boe) per day.
The decline is primarily the result of an explosion that disrupted operations at the gas processing and transportation hub at Varanus Island in Australia, as well as a strike at a refinery in Scotland that shut in production from all of the fields on the Forties pipeline system, including Apache’s Forties Field.
Steven Farris, Apache’s president and CEO, said: “Driven by successful drilling programs and seven development projects that are expected to add 135,000boe per day to worldwide net production over the next four years, we are confident Apache is entering a period of accelerating production growth in 2009-12.”