Apache’s (APA) third-quarter profit soared 70% as the exploration and production company got a boost from higher production and crude oil prices.
The Houston-based company said on Thursday its net income checked in at $306 million compared to $180 million in the year-ago quarter. Per-share earnings rose to 75 cents from 41 cents. Excluding asset writedowns and other impacts, adjusted earnings ticked higher to $2.32 from $2.16.
Derivatives losses weighed on revenue, which slipped 3.8% to $4.02 billion. Meanwhile, revenue from oil and gas production jumped 6.5% to $4.41 billion.
Analysts expected an adjusted profit of $2.15 a share and revenue of $4.32 billion.
Oil production during the quarter rose 4.9%, and average selling prices for oil were up 4.8%.
CEO G. Steven Farris said in a statement Apache’s focused drilling in North America is yielding significant production growth, while the Permian and Central regions are the main drivers of production. Those two regions account for 35% of the company’s total worldwide production of oil and natural gas liquids, up from 27% a year ago.
“Going forward, our international regions will be the primary source of excess cash flow to fund our next growth cycle,” he said.
In August, Apache announced a $3.1 billion deal to sell a 33% stake in its Egypt business to China Petrochemical, also known as Sinopec. Apache is eyeing $4 billion worth of asset sales as part of a plan to strengthen its balance sheet.
Shares were trading 2 cents lower at $88.43 in pre-market trading.