Apache Corp. on Thursday said it narrowed its losses in the fourth quarter, ending a year that was significantly better than 2016 and included a major discovery in West Texas.
The Houston exploration and production company said it aggressively cut costs while meeting production targets, shrinking its loss for the three months ending in December to $182 milliion from $4 billion in the same period a year earlier. For all of 2016, Apache reported a loss of $1.4 billion compared $10.4 billion n 2015. Revenues in fourth quarter slipped 2 percent to $1.45 billion from $1.48 billion from the same period in 2015. Annual revenues declined more than 20 percent to $5.4 billion from $6.9 billion in 2015.
Apache said it earned an average of $47.39 per barrel of oil in the the last three months of 2016, compared to $39.79 in the same period a year earlier. Chief executive John J. Christmann IV called 2016 “an important step in Apache’s transformation.”
“We are poised for excellent long-term, organic growth through 2018 and beyond., which will be driven primarily by our high quality acreage positions in the Delaware and Midland basins,” he said in a statement.
The Midland and Delaware basins are sections of the larger Permian Basin in West Texas. Christmann touted Apache’s discovery of a new field in the Delaware, called Alpine High which the company announced in September. Apache estimates the field holds the equivalent of 15 billion barrels of oil and gas, but early production results, released earlier this month, disappointed analysts and investors.