Execs appear to be looking at organization as a whole and realizing what the market has for years - Apache is not a sustainable company. Apache’s assets are not great, inventory is poor, debt is too high, and the entire future of the company is relying on either a huge commodity price run or Suriname being as good as Exxon’s Guyana assets (which all publicly available data to date indicates is that it is not). Layoffs are coming as they continue to sell assets.
Permian management, since the CEO was in charge, we’re laughably bad (worst in the industry?) making decisions that destroyed almost all of Apache’s tier 1 inventory. What is left is a few years of inventory on a 2-3 rig program that barely scrapes by on economics. No growth and terrible inventory...not something that makes the company look great.
The remainder of Texas legacy assets are all being considered for sale or are already on the block. This will further gut cash flow and the funds received will be used for nothing of value based on the CEOs track record. Billions of assets have been sold since he took the reigns and debt remains relatively the same while the proceeds from the sales have disappeared into oblivion and market cap/enterprise value has dropped significantly.
North Sea is a a dying asset and a liability. It churns some cash today but the liabilities are a huge issue.
GOM is a massive liability and Apache is about to get hundreds of millions (or more) in liabilities back once the CEOs buddies bankrupt the company we sold garbage assets to.
Egypt is not great due to the terrible contracts with the Egyptian government. If the publicly disclosed renegotiated contracts come to fruition this could be beneficial, however, no update has been given on this since it was announced months ago which means things likely went sideways or the government is not agreeing to what Apache needs. Inventory here is thin as well so this asset doesn’t look good after another 5+ years.
Alpine High? No need to harp on this.
Exploration has been a complete joke with dollars burned as fast as they were given to Keenan.
Suriname from the outside looks exciting and may turn out to be great, but there is a lot of hair surrounding it and the economics are questionable.
Overall, Apache has a major cash flow problem which will get really ugly in 3-5 years. The execs have to be looking at a merger at this point for a major shakeup and longevity or the company will get worse and worse until it’s swallowed up for pennies on the dollar.