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    Apache Returns to Profit in 2017

Summary

US producer Apache was profitable again in 2017 and plans to spend more this year to develop its Alpine High midstream assets.

by: Dale Lunan

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Apache Returns to Profit in 2017

US producer Apache on February 22 reported income of $1.3bn in 2017, reversing 2016's $1.4bn loss. Adjusted earnings rose to $92mn last year from an adjusted loss of $430mn in 2016. Adjusted Ebitda rose to $3.73bn from $3.11bn.

Apache CEO John Christmann IV said 2017 was a year of “significant progress” at the company, marked by several important milestones. “In the Permian, we returned to a growth trajectory with notable oil growth in the Midland Basin and commencement of production from Alpine High,” he said.

Alpine High is Apache’s 2016 wet gas discovery in the southern Delaware Basin in Texas, where Apache has about 340,000 contiguous leasehold acres containing in-place resources of some 75 trillion ft3 of natural gas and 3bn barrels of oil.

In the wake of the discovery, Apache developed significant midstream processing assets at Alpine High, investing $700mn through the end of last year. It now has five central processing facilities providing 330mn ft3/day of processing capacity, and expects to spend $500mn this year to bring processing capacity to 830mn ft3/day.