Apache 2Q14 Earnings Call Notes

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This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Permian ahead of expectations

” through the first half of the year, the Permian region’s performance is ahead of our plan. In fact we surpassed the significant milestone earlier this year as we celebrated reaching 150,000 barrels of oil equivalent and a day net.”

Expect 15-18% north america growth, 2-4% sequentially

“As Steve said, we remain on track to deliver our production growth expectations for the year, consistent with our 15% to 18% North American onshore liquids growth expectations, and the third and fourth quarters we anticipate 2% to 4% sequential North American onshore liquids growth, driven by our horizontal development, programs continuing to build on their momentum.”

Open to selling international assets but not going to do it for less than the right price

” like Heidelberg and Lucius, we started selling that over a year and what we ended up selling it for, because we weren’t going to sell it at prices that don’t make sense. And that’s the way I feel about our international assets. But I do think there is a potential for a capital market solution for a number of these assets and we’re working on that, have been working on that for some time.”

North American assets take a different set of skills than the current international portfolio

” I see North American onshore sales as a different business than what we are doing internationally. They take different expertise, they take different time frames, they take different really scientific skill sets.

And I think that it is important for us to recognize that, and recognize if we’re going to be the best we can be, we need to concentrate on the things that we have the most of, and I think has the highest – the greatest growth future.”

Sounds like they’re more than just open to selling international–actively working on it

“Based on our work to-date, we believe that we can effect the separation of our international business in a tax efficient manner. We still have obviously significant work ahead of us as we move this forward. So based on everything that we have seen thus far, we believe we can get this done efficiently”

It’s going to happen

“we recognize and we have recognized that there really are two different businesses and I think how we accomplish that recognition in the end will probably end up a majority of those assets being in another vehicle, if you understand what I’m saying. What that vehicle is if it’s a capital structure solution or for an outright sale.”

Kitimat going away too

“if you look at where we are going on our base business and you think about the priority of capital and the time frame associated with LNG projects and specifically Kitimat frankly, it makes sense for someone else to own it that has a different time horizon than we do.”

We’re going to be North American onshore. That’s our case for why we’re divesting international

“in our opinion it makes sense that we continue to reduce the size of our international assets because we made a decision long time ago, we’re going to be North American onshore. So that’s, honestly that is and we’ve had some recent discussion about that, among lots of folks and I think it’s important that we state our case and that is our case.”