U.S. oil and gas producer Apache Corp. reported a 78.6% fall in second-quarter adjusted profit on July 31, hit by lower prices for oil, gas and NGL and higher operating costs.
The company reported a 43.6% fall in natural gas prices per thousand cubic feet in the reported quarter on lower demand coupled with surging production.
The lower prices also led Apache to temporarily halt production at its Alpine High assets in the Permian basin late March, curtailing output of about 250 million cubic feet of natural gas per day.
Average realized prices for oil are down 8.1% per barrel, while NGL fell 46.1% per barrel from a year earlier.
The company’s total operating expenses rose 23.5% to $1.76 billion.
Total adjusted production rose to 395,616 barrels of oil equivalent per day (boe/d) from 389,734 boe/d, boosted by higher output from the Permian Basin in the United States and the U.K. North Sea.
Apache said Permian production for the rest of the year would be hurt by delays in the Midland and Delaware basins.
The Houston-based company’s adjusted earnings fell to $41 million, or 11 cents per share, in the quarter ended June 30, from $192 million, or 50 cents per share, a year earlier.
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