Apache Corp. (NYSE: APA) reported first-quarter 2015 results before markets opened Thursday morning. The independent oil and gas producer posted an adjusted diluted loss per share of $0.37 on revenues of $1.82 billion. In the same period a year ago, the company reported earnings per share of $1.81 on revenues of $3.68 billion. First-quarter results also compare to the Thomson Reuters consensus estimates for a net loss of $0.57 and $1.81 billion in revenues.

On a GAAP basis, Apache posted a quarterly loss of $12.34. The big hit came after an after-tax ceiling-test write-down of $4.7 billion, as a result of substantially lower commodity prices. Other items added $74 million to the loss and were partially offset by a $266 million deferred tax adjustment. The company took a $12.78 per share charge in the prior quarter as well on non-cash property write-downs and impairments.

In April the company sold its Wheatstone and Kitimat LNG projects for $3.7 billion and its remaining oil and gas properties in Australia for $2.1 billion

Looking ahead, Apache remains on track to meet its forecast 2015 capital spending of $2.1 billion to $2.3 billion onshore in North America and continues to project relatively flat production of around 302,000 barrels of oil equivalent per day. Production in the first quarter totaled 307,000 barrels of oil equivalent per day.

Internationally and offshore Apache lowered its forecast capex spending from a prior range of $1.5 billion to $1.7 billion to a new range of $1.3 billion to $1.6 billion and production is forecast to rise “slightly” from 207,000 barrels a day in 2014, unchanged from its prior production estimate.

The company’s rig count fell from an average of 42 in the Permian Basin to just 15, and the company said it is now operating 11 rigs in the region. Production in the Permian Basin was down slightly year-over-year in the quarter. In its Central region, Apache operated an average of four rigs in the first quarter and is currently running three, in line with its prior forecast for two to three operating rigs in the region. In the Eagle Ford shale play Apache operated an average of four rigs in the quarter, and there are no rigs currently operating in the Eagle Ford, as the company said it is focused on completing the 38 drilled but uncompleted wells in the region.

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The company’s CEO said:

During the quarter, we significantly reduced our drilling activity and cost structure in response to the rapid oil-price downturn. Drilling and completion costs across all of our key plays in North America onshore are down between 20 and 40 percent from those we provided in our North American Update last November. … Apache’s portfolio now consists of an onshore North American position with a robust inventory of drilling opportunities, complemented by free-cash-flow-generating assets in the North Sea and Egypt. Our international assets benefit from attractive Brent-linked oil prices and also offer a significant inventory of exploration and development opportunities. … We will monitor oil prices for the remainder of the quarter, and at mid-year, revisit our planned activity levels for the balance of 2015. Apache remains committed to maintaining operational flexibility and will respond quickly to changes in our cash flow. With more than $5 billion in net proceeds coming from recent asset sales, our balance sheet is now in excellent shape.

Apache received an average of $44.07 per barrel for its onshore North American production in the first-quarter down from $93.72 in the same period last year. Internationally the company receives $47.56 per barrel of oil compared with $101.03 a year ago. Natural gas price realizations were also sharply lower than last year.

The company did not offer financial guidance, but consensus estimates call for a second quarter loss of $0.51 per share on revenues of $1.82 billion. For the full year, analysts are looking for a loss of $1.47 per share on revenues of $7.75 billion.

Apache’s shares traded down about 0.2% in Thursday’s premarket trading to $67.34, in the stock’s 52-week range of $54.34 to $104.57. The consensus target price for the shares was around $71.20 before the report, and the high target price is $87.00.

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