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Image courtesy of Apache Corporation.

Apache Corporation sunk to a $5.6 billion loss in the second quarter after taking a $3.7 billion write down tied to low oil prices.

The Houston-based company booked a second quarter net loss of $5.6 billion, or $14.83 per diluted common share, down from a net income of $505 million in the second quarter of 2014.

The net loss includes an after-tax ceiling-test write down of $3.7 billion related to low commodity prices and $1.9 billion of other items, “mostly after-tax losses and tax expense associated with the company’s assets sold during the quarter,” Apache said.

Apache reported an adjusted earnings of $82 million, or $0.22 per share, down from $576 million in the second quarter of 2014.

Adjusted EBITDA from continuing operations for the second quarter came in at $1.25 billion, down from $2.32 billion during the same quarter last year.

Total second quarter revenues fell to $1.97 billion from $3.28 billion in the second quarter 2014.

Worldwide production for the second quarter was 564,000 barrels of oil equivalent per day.

Apache’s total production was 599,000 boe per day, including 35,000 boe per day of production associated with discontinued operations in Australia

The company earned $5.7 billion in proceeds during the second quarter from the sales of its LNG interests and oil and gas properties in Australia and Canada,.

A portion of the funds were used to repay $2.7 billion of outstanding commercial paper and short-term credit facilities, the company said.

Apache’s long-term debt was $9.7 billion as of June 30, and cash was $3 billion.

CEO and president John J. Christmann, IV said the company is implementing “multiple overhead-reduction initiatives throughout the year and are on track to achieve a 25 to 30 percent reduction in cash G&A costs by year-end.”

Since the end of 2014, Apache has reduced its headcount by about 20 percent, the company added.

North American production jumped 3 percent sequentially to about 317,000 barrels of oil equivalent per day, thanks to a 13,500 barrel per day increase in Permian Basin production.

The company now expects North American production to grow 1 to 2 percent this year to 305,000 to 308,000 barrels of oil equivalent per day after initially expecting flat year over year growth.

Apache also said its planning to boost its North American onshore activities during the second half of the year.

The company now plans to average 16 onshore North American rigs this year, with 13 of the rigs being located in the Permian Basin.

Apache also expects to reach total depth on an additional 40 to 50 wells and complete an additional 30 to 35 wells beyond its original plan for 2015.

The company added that it continues to anticipate a backlog of 80 to 100 drilled-but-uncompleted wells in North America at the end of 2015.

“This increase in activity during the second half of 2015 is not expected to have a material impact on our full-year 2015 production; however, it will establish a positive production trajectory in the fourth quarter and heading in to 2016,” Christmann concluded.