Earnings Preview For Apache Corporation (APA, BP)

Apache Corporation APA is expected to announce its Q1 earnings report on Thursday, April 28, before the markets open. Analysts are expecting earnings per share to rise to $2.58, an increase of 22.4% from the last year's $2.10 level. Within the last 30 days, analysts have upgraded their expectations by $0.03. Apache Corporation is a Houston-based independent energy company, which explores for, develops and produces natural gas, crude oil and natural gas liquids. As of December 31, 2010, it had exploration and production interests in seven countries: the United States, Canada, Egypt, Australia, offshore the United Kingdom in the North Sea, Argentina, and Chile. During the year ended December 31, 2010, it participated in drilling 904 gross wells. As of December 31, 2010, in addition to its completed wells, several wells had not reached completion: 51 in the United States ; seven in Canada; 22 in Egypt; two in Australia; three in the North Sea; and seven in Argentina. On November 10, 2010, Apache completed the acquisition of Mariner Energy. On November 4, 2010, the company completed the acquisition of BP's BP assets in Egypt's Western Desert. Investors will be watching closely if the fragile global recovery can push oil prices higher, thus increasing Apache's revenues. The current estimates put Q1 revenues at $3.76 billion, up 40.6% from a year ago. Revenues for the whole year will not grow at such a strong pace, however, but at a slightly lower rate of 31.6%. Earnings for the whole year will reach $11.60 per share, up 30% from a year ago, but still below the industry's 43.7% growth rate. Rating agencies have a lot of faith in Apache, however, as currently 22 agencies have a Buy or Strong buy rating on its shares, with the mean share price target of $144. Apache's closing value on Tuesday was $122.60. Investors will be uneased, however, by Apache's recent underperformance record. In 2010, Apache's results were below analysts' expectations on three occasions.