Earnings Preview: Apache Corp.

Apache Corp. (APA) is expected to report Q4 earnings Thursday with a conference call scheduled for 12:00 pm ET.

Guidance

Analysts are looking for Apache to post a Q4 EPS of $2.52 on revenue of $2.77B. The consensus range is $1.88 to $3.04 for EPS, and revenue range of $2.54B to $2.96B, according to First Call.

In November, Apache was awarded the rights to explore off the Chilean coast, and in December announced the first significant well drilled in the Argentinean side of Tierra del Fuego. The well will produce 1,635 barrels of oil and 1.3M cubic feet of gas a day.

Analyst analysis

Calyon Securities upgraded Apache to Buy from Add. Lehman Brothers upgraded Apache to Neutral from Negative, citing higher near-term natural gas prices.

In January, Apache said that they had already reported discoveries for its 2008 exploration program, including that the Hydra-1X exploration well in Egypt's Western Desert test-flowed 41.6M cubic feet of natural gas and 1,313 barrels of condensate per day from the Jurassic Lower Safa formation.

Recently, market guru Jim Cramer said he prefers Apache over Exxon (XOM), based on Apache's 9% to 12% production growth.