Apache shot down by gas prices

Targeting LNG: Apache chief Steven Farris

Reuters/Scanpix

Steve Marshall

 14 February 2013 13:55 GMT

US independent Apache saw its profits almost halved in the fourth quarter, missing analyst estimates, as it was severely hit by weak North American natural gas prices.

Its net income attributable to shareholders plunged to $649 million, or $1.64 per share, from $1.17 billion a year earlier despite seeing a 2% year-on-year increase in revenue to $4.4 billion as higher output failed to offset the gas price drop.

Analysts on average had expected a profit of $2.30 per share on revenue of $4.36 billion, according to Thomson Reuters I/B/E/S.

Full-year profits were also substantially lower at $1.9 billion, compared with $4.5 billion in 2011, despite achieving record revenue of $16.9 billion that was slightly up on 2011.

Apache delivered record production of an average 800,000 barrels of oil equivalent per day,…

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