US operators swing to profits

Apache Corporation, Chesapeake Energy and Occidental Petroleum released first-quarter results on Thursday, with all three US energy firms posting profits after a string of losses in recent reporting periods.

Chesapeake’s adjusted net income was USD 212 million, up from a loss of USD 69 million in Q1 of 2016. Revenues were up 41% year-on-year and production during the quarter averaged at 528,000 boepd.

“Our operational momentum continues to build in our Eagle Ford, Powder River Basin and Mid-Continent oil assets, as we remain on track to reach our production target of 100,000 barrels of oil per day by year-end,” CEO Doug Lawler said in a statement. Crude production in Q1 averaged 83,700 bopd.

“We expect our production to grow significantly in the second half of 2017 as we place more wells to sales, and as a result, we have raised the bottom range of our 2017 production guidance,” Lawler added.

Occidental’s net income stood at USD 117 million, while output during the quarter averaged 584,000 boepd.

“Permian Resources continues to be a growth engine for our company, with a 5 percent improvement in production this quarter, reflecting increased drilling activity and well productivity in the Delaware Basin,” Oxy CEO Vicki Hollub said in a press release.

Apache trailed third with adjusted earnings of USD 31 million and an average production of 481,000 boepd. The firm noted that its Alpine High gas project had come on stream two months ahead of schedule during the quarter.

“[W]e continued ramping up activity in our core Midland Basin acreage and are beginning to see significant cost benefits associated with our development drilling in the area,” CEO John J. Christmann IV said in comments on the results.

“We are looking forward to the growing contribution these assets will have in the quarters to come.”