Apache Corp. reported a loss of $386 million during second-quarter 2020. Adjusted for certain items that impact comparability, the company posted a second-quarter loss of $281 million, compared to earnings of $41 million for second-quarter 2019. Net cash provided by operating activities in the current quarter was $84 million, down from $856 million in second-quarter 2019.
Apache’s second quarter reported production was 435,000 boe/d, and adjusted production, which excludes Egypt noncontrolling interest and tax barrels, was 394,000 boe/d.
Following a thorough operational and economic evaluation of all producing wells, Apache chose to curtail 28,000 boe/d during the second quarter to minimize the negative cash flow impacts of lower oil and NGL prices. The company shut-in an additional 7,000 boe/d due to unscheduled pipeline downtime at Alpine High. As prices rebounded, the company has returned its curtailed volumes in the North Sea and Alpine High to production, along with a portion of curtailed oil volumes elsewhere in the Permian basin.
During the quarter, Apache’s overall average oil price per barrel was $25.77/bbl, compared to $48.31/bbl for first-quarter 2020 and $63.71/bbl for second-quarter 2019.
A third discovery in Block 58 offshore Suriname, Kwaskwasi-1, was reported July 29 (OGJ Online, July 29, 2020). The company submitted an appraisal plan for the first discovery, Maka, in May, after reporting its second discovery, Sapakara, in April. A fourth exploration prospect, Keskesi East-1, will be drilled 10 km (6 miles) southeast of the Sapakara discovery following Kwaskwasi-1 operations.
Apache delivered second-quarter upstream capital investment of $216 million and is tracking toward the lower end of its annual capital guidance of $1-1.2 billion. The company guided to third-quarter capital investment of $190 million.