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Apache's Permian Output Jumps 36% YOY; Touts Alpine High Cost Reductions

By: Apache Corp

Share Print Bookmark    |    Monday,May 20,2019

Apache Corp. reported its Q1 2019 results. Here are the highlights from its report and presentation.

• In Q1, the company invested $597 million in upstream capital and remains on track for $2.4 billion for the year. Its production growth expectation of 6-10% from Q4 2018 remains unchanged.

Q1 Production: Record Permian Output (Up 36% YOY)

- Q1 Production: 503,000 BOEPD - up 19% YOY

• Achieved U.S. production of 292,000 BOE per day, exceeding guidance by 5,000 BOEPD, and reached record Permian Basin production of 248,000 BOEPD - this is up 36% YOY

• Achieved International reported production of 211,000 BOEPD

John J. Christmann IV, Apache's CEO and President, said: “In the Permian Basin, we grew 5 percent quarter over quarter and maintained oil production near fourth-quarter levels, despite placing one of our two completion crews on a frac holiday for the entire first quarter. At Alpine High, where we also had a relatively low number of completions, production was up significantly from the fourth quarter and was in-line with our guidance of 70,000 BOE per day.

“International production grew 6 percent compared to the fourth quarter and benefited from high facilities uptime across our operations, strong early production rates from two new wells in the North Sea, and a continuation of good results from our revamped waterflood program in the Forties Field."

Alpine High D&C Costs Down; Expects Further Improvements

The company continues to make significant progress on drilling and completion costs in the play and has delivered a 20% and 32% reduction, respectively, from 2017 averages for the quarter.

Further improvements are expected as Alpine High moves further into development and optimization mode.

Rig & Drilling Activity

United States – U.S. production averaged 292,000 BOE per day. The company averaged 16 rigs and drilled and completed 39 gross-operated wells. 

In the Permian, Apache averaged 14 rigs and drilled and completed 39 gross-operated wells.

• Midland Basin – During the quarter, the company drilled and completed 18 gross-operated wells and maintained production despite significantly fewer wells placed online compared to the previous quarter.

• Delaware Basin – Apache’s activity in the Delaware Basin currently includes operations in Alpine High, Dixieland, and Pecos Bend in Reeves County and the slope play in southeast New Mexico.

• Alpine High - Production in the first quarter averaged 70,000 BOE per day, a 165-percent increase over the first quarter of 2018. During the quarter, the company drilled and completed 17 gross-operated wells.

• Outside of Alpine High in the Delaware Basin, four new wells were placed online during the quarter.

International Highlights

Egypt – Apache averaged 10 rigs during the quarter and drilled and completed 23 gross-operated wells with an 83-percent success rate. Adjusted production in Egypt, which excludes noncontrolling interest and the impact of tax barrels, averaged 79,000 BOE per day. As a result of recently awarded concessions and the company’s ongoing broadband seismic acquisition program, Apache has added several hundred new leads and prospects in the region.

North Sea – Apache averaged 3 rigs during the quarter and produced 66,000 BOE per day, the highest quarterly production in two years. Strong production levels were the result of a full quarter of production from Garten, a new development well at Callater and strong uptime on producing facilities for the quarter.