Why did Apache decide to get rid of some of its best people? Why does this keep happening over and over again? Who makes these decisions?
Every time they lay off somebody who makes too much money (according to them, of course) they have to hire two people down the line to do that one person's job! How is that good for the company's bottom line?
This all makes very little sense to me.
Omg “OK Boomer” as if we don’t all know gas is cyclical. Jeez....
“I’m a bazillion years old so therefore I can predict the market”. Same arrogance as SA VPs and APA CEO.
I’m 71 years old. I started work in the oil industry in 1967, the day after I graduated from High School. After college, I went to work for a major. Now I’m in business for myself, and have 53 years experience in the Permian Basin. I’ve seen the gas market come and go many times. I remember times that wells being drilled for gas outnumbered wells being drilled for oil by at least 2 to 1. It’s a cyclic market. At some point in the future, the gas market will re-emerge. It might be 10 years, might be 20. But natural gas is the clean energy gor electrical production, and it will be back. When it comes back around, the leadership of APA, though probably long gone, will be lauded as geniuses in the history of the company. That’s assuming they maintain the leases and hang on to the asset. Can’t count the number of times I’ve seen it happen.
I am happy not to work for such a stupid company anymore. The market requires strong leadership and agility to be profitable. Apache Corp is one of the least innovative companies I have ever worked for. My first internship with Walmart as a 20yo, I was dealing with multiple technologies blockchain to order and expedite the receiving of material goods. I was trying to show my boss how to apply a new way of thinking in oil and gas. This company would rather have 13 spreadsheets to accomplish one task (this is what they call lean)!!! This is why Surinam will never happen even with a partner. Apache is stuck in the 1990s drowning in debt. And as for leadership, who in the world allowed investment in Alpine? A fool can see it was doomed from the start.
Some good people certainly got laid off, but don’t act like there isn’t plenty of dead wood and bloat that have been let go too. Every company of a size have it.
Get rid of the people who ask the tough technical questions because VPs are to dumb to understand. Keep the people who wasted tons of money for no reason because they are your buddy. Great company.
No one wants to buy Apache because of their debt load. I think their CFO actually explained it this way in a town hall. What a frickin joke. So, don’t count on a buyout, because APA is a $10B company with almost $10B in debt. So a buyout is $25B for the board to say yes. No one is going to give that for Apache. You will just have to ride the ship down. Just like Altus. Going down like crazy.
Apache is trash and one of the least innovative E&Ps out there. So of course if you have an innovation, you get shut down and as a part of Ascend, you get laid off. I have noticed that the innovative thinkers and the people who challenge management have been quiet for years now. These are not the people you want being quiet.
This company is run by lawyers, accountants and a former SAP Salesman (CTO). Decisions are not made based on Apaches core business model. They are made based on BS IT protocols and if there is an ounce of legal risk, you they can a good idea. Insane how long it takes just to get a no answer on a project that would have taken 2 weeks at any reasonable E&P company.
Apache is the worst performer of the decade. Even when oil was $100+, they were wasting away with like 30 rigs in the MidCon. Totally missed the shale revolution that actually paid out when oil was high. They are now basically left with leaker wells and gas wells that are cash flow negative. 12 months and this whole thing is on the block. Get out! Get out!
Hey Marv- nobody worth knowing sings Apache’s praises.
Best Loser stock of the decade!
Oil is a commodity, so it is gas, but the guys at the top decided to invest BILLIONS on AH, against all the advise of experts inside and outside APA. Nobody predicted the gas of price will increase to make that economic. And nobody believed either that there were 3 billion barrels of oil there like SK and his gang claimed.
When times are great, oil is high, and the outlook is favorable, companies like Apache hire. And everybody sings their praises! When times turn down, oil prices are low, market outlook is bleak, and companies like Apache have to cut costs, they suddenly become demons from hell. Guys, oil is a COMMODITY. BY DEFINITION, commodities swing like a pendulum with supply and demand. Apache is cutting back. Guess what. So are all other oil companies of about the same size. It’s called the industry you went to work for.
The goal is to cut costs and get rid of people from Apache Past. Why do the SVPs get to stay since their jobs have also been eliminated?! Pals with the CEO.
My department got hit hard and now we have so many inexperienced people left. It will be hard to continue support at a level necessary to keep operations running smoothly but I guess we’ll limp along somehow.
I'm betting on someone buying out Apace within a year. Apache is not the same great company as it was with Raymond.
Best of luck guys!
Rules of Ascend:
Smart people ask tough questions- get rid of them.
People who nod in blind agreement get promoted.
I hears North Sea was affected as well in yesterday’s debacle.
Surely they cant be cutting Aberdeen or Cairo they are the only regions providing reliable cash flow to continue funding leaderships failures time after time
Any news about layoffs in Aberdeen or Cairo?
The people in charge are just trying to keep things afloat long enough for either their own retirement or a buyout. And since they don't make decisions that increase revenue, they have focused on reducing expenses. It's a shame that hard workers have to pay the price for it. Especially when they're the people you need to fix the revenue problem. And yeah Suriname will help...5 years from now when we actually get production. Can we meet our financial obligations until then with an ever-shrinking revenue stream? I have my doubts.
Smart people ask tough questions. No one wants tough questions when they're making lousy decisions.