MORE OIL AND GAS COMPANIES REPORT FIRST QUARTER LOSSES AND FEWER M & A TRANSACTIONS

By TONI ELLINGTON

In addition to those losses previously reported in this blog, Apache Corporation reported a net loss of $4.7 billion for First Quarter (“1Q”) 2015. When adjusted, the 1Q loss for Apache totaled $139 million. Apache stated that the company remains on track to meet its 2015 capital spending projections for North America. The company is lowering its international capital spending and anticipates a sale of Australian assets around mid-year.

Chesapeake Energy Corporation reported a 1Q net loss of $3.782 billion, down from a net income of $374 million for 1Q 2014. The company attributed the loss to the impairment for carrying the value of the company’s oil and gas properties amid decreases in oil and natural gas prices.

Low oil prices impacted the number of merger and acquisition deals in the industry during 1Q 2015.  Noble Energy Inc. of Houston has entered into an agreement to acquire Rosetta Resources, Inc., a Houston company, in a deal valued at $2.1 billion. The deal is expected to close in the Third Quarter of 2015.

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