Thread regarding Apache Corp. layoffs

Contrarian opinion

Why aren't we ramping up right now? Drilling costs are about to drop substantially, and we could take advantage of drilling out our full 2020 program at minimum cost to us. And then, when prices recover, crank up production and benefit from it on the other side.

I get that we are dangerously close to insolvency but geez you'd think we could figure out a way to make it work. We always do the opposite. We always drill a bunch when prices (i.e. costs) are high and then sit on our base production when oil is $30/barrel. Drill it cheap, produce it all at a good price, and then pay down some debt and stockpile cash while limiting activity due to increased drilling costs in line with commodity prices. Am I crazy? This seems like obvious business strategy to me.

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| 1421 views | | 7 replies (last March 20, 2020) | Reply
Post ID: @OP+13XR6UGg

7 replies (most recent on top)

Service COs already gave you rock bottom prices fool!

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Post ID: @7dsx+13XR6UGg

UMMMMM APA IS BROKE JO!

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Post ID: @5uoa+13XR6UGg

No money, mo’ problems

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Post ID: @1lrg+13XR6UGg

You can’t squeeze water from a dry sponge.

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Post ID: @1olz+13XR6UGg

Apache would need to get financing to do that. Banks and Wall Street is saying, “No, don’t think so”.

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Post ID: @pqb+13XR6UGg

The Constanza method. Brilliant! Except the company will be bankrupt before prices bounce back.

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Post ID: @ncs+13XR6UGg

That's called rolling the dice. Could be high reward but also very likely to worsen the problem financially if the markets don't play nice.

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Post ID: @zdz+13XR6UGg

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