Shale producer APA beats second-quarter profit estimates
The higher oil price helped?APA, an oil and gas producer, beat Wall Street expectations for a?second quarter profit on Wednesday.
Brent crude oil prices rose 19.2% in the first quarter of this year compared to a year ago, averaging $89.62 per barrel.
Houston-based company, Texas Oil Company said that its realized price for each barrel produced increased to $98.24 compared with $65.88 a year earlier.
APA has its largest operations in the U.S. followed by Egypt, North Sea?and Suriname. Energy company still vulnerable to 'changes in commodity price' due to geopolitical issues.
APA's production fell by nearly 12% in the third quarter to 410,000 barrels equivalent per day (boepd), due to lower volumes coming from its operations in Egypt, the United States and North Sea.
Although oil prices rose dramatically this year due to the Middle East conflict, U.S. producers of shale gas largely avoided increasing output in order to maintain spending discipline, given the?geopolitical uncertainties.
APA expects to save 'about $500 million a year by the end 2026. This is an increase from its previous target of $450 millions.
However, the company?increased their full-year U.S. crude oil production forecast from 122,000 to 123,000 bpd.
According to data compiled and analyzed by LSEG, it?reported an adjusted profit per share of $1.89 for the three months ended June 30 compared to analysts' average estimates of $1.87. (Reporting and editing by Shilpa Majumdar in Bengaluru)
(source: Reuters)
