Tomahawk, WI 05/14/2014 (Basicsmedia) – On May 8, 2014 Apache Corporation (NYSE:APA) came out with the result for the 1Q2014. The CEO, Chairman and President of Apache, G. Steven Farris corroborated with effacing positivity about the company’s record performance across the Permian Region, which helped APA bag strong results in Q1-2014. The CEO emphasized that APA has been the most active driller with a number of onshore projects in North America, operating approximately 82 rigs, on average in this quarter.

The Q1 Synopsis!

Currently, Apache Corporation (NYSE:APA) has a market capitalization of $35.00 billion. However, its earnings have not been ‘emphatic’ in the first quarter. The total revenue garnered in Q1-2014 is $3.68 billion; in contrast the Year-Over-Year revenue in Q1-2013 fared better— up by 6.9%. Abysmal fall in the prices of the crude oil during the past two quarters can be ascertained as one of the prime reasons behind such pitfall in the revenue generated. The revenues obtained from the Oil segment saw a sharp decline of 11.8% YoY in Q1-2014 to $2.82 billion.

Amidst highly realized prices, APA has portrayed that its share of revenues from natural gas has declined by a margin of 5.1%, year-over-year, to the figure of $646 million, since there has been a significant decline in the holistic natural gas production. APA also severed a decline in the natural gas production decline by 19.9% YoY. On the contrary, Apache Corporation (NYSE:APA) has amassed increase in NGL (Natural Gas Liquid) revenues by 25.7% YoY, specifically $186 million. This has surfaced due to increased production of NGL by almost 8.2%.

The net profit has fallen sharply from $696 million in Q1-2013 to $236 million in Q1-2014, incurred largely due to losses owing to discontinued operations. However, Apache managed an adjusted EPS of $1.78 in this quarter.

APA’s debt-to-equity ratio is at 0.29, showing how well the debt levels have been managed! Besides, APA has answered all conjectures, by raising the dividend share per quarter from 20 cents to 25 cents, corroborating that it had a stronger Q1 than Q3 and Q4 2013!

Cuts and Gains!

In recent times, APA has revealed its notion to reduce the asset base in the Lucius and Heidelberg development projects; APA has plans to sell a certain fraction of its stakes worth $1.4 billion to Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX). Again, Apache Corporation (NYSE:APA) has shown interest in cutting down its net expenditure in the 2014 Kitimat LNG Project. However, the CEO pointed out its vision to acquire nearly 650 blocks to procure gas and oil from the shelf in the deep-waters of the Gulf-of-Mexico.

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