Apache Corporation (APA)’s Down But Hardly Out

In the Gulf Coast onshore regions, management intends to average four working rigs during 2013, of which three would be operated. The result is likely to be approximately 39 well completions for the year. In the nearby deepwater Gulf of Mexico, the company expects to drill three operated exploration wells and four non-operated development wells.

As for the the company’s operations in the British Commonwealth, Apache expects to drill about 150 wells in Canada in 2013, with a focus on oil and liquids-rich gas plays and the horizontal exploration of several plays. Also receiving attention will be testing of the sizable Montney and Duvernay plays, where the company controls substantial acreage. In Australia, management anticiaptes spending about $1.9 billion, largely for the drilling of about a half-dozen wells.

According to Rodney Eichler, the company’s president and chief operating officer, in Egypt, “Our operations continue uninterrupted. This asset remains a highly profitable piece of (the) Apache portfolio, and as such we plan to make a similar investment in 2013 as we did in 2012. This will allow us to drill over 270 wells, including over 60 exploration wells.” And in Argentina, the company expects its investment level will also be consistent with recent years. The result is likely be the drilling of about 20 wells in the South American country this year.

In concluding the company’s post-release call, CFO Thomas Chambers said, “We had a solid year of production revenues, cash flows resulting from our active drilling program. We have built a strong foundation for cash flow generation and support (for) both our ongoing drilling program and our inventory of longer-term development projects as we head into 2013.”

The bottom line
So, Apache fell significantly short of the solid results of the somewhat smaller EOG, for instance. Indeed, it even missed expectations for its own results. But while the larger company is down, it’s hardly out. I’m inclined to monitor it carefully, while avoiding the slippage of any pesos in its direction for now.

The article Apache’s Down But Hardly Out originally appeared on Fool.com and is written by David Lee Smith.

Fool contributor David Lee Smith has no position in any stocks mentioned. The Motley Fool recommends Chevron. The Motley Fool owns shares of Apache.

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