Higher oil prices drive Apache’s profit beat

(Reuters) – Oil producer Apache Corp beat quarterly profit estimates as an uptick in prices prompted the company to pump more crude in the Permian Basin.

The company said on Thursday said it would spend 70 percent of its $3 billion capital budget for this year on drilling wells in the region, which is at the heart of the U.S. shale boom.

Oil volumes in the Permian region rose more than 10 percent, the company said. However, overall North America volumes dropped due to the sale of Apache’s Canadian assets in July.

The Houston-based company said average realized oil prices jumped 23 percent to $58.36 per barrel. An OPEC-Led production cut lifted global oil prices by nearly 18 percent in 2017.

Revenue rose 9.3 percent to $1.59 billion in the three months ended Dec.31.

Apache also managed to keep a tight grip on costs, partly helping it swing to net attributable income of $456 million from a loss of $182 million a year earlier. (bit.ly/2ELRNZo)

Excluding items, Apache earned 33 per share, beating analysts’ average estimate by 11 cents, according to Thomson Reuters I/B/E/S.

Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Savio D’Souza

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