Apache Responds to Low Oil Prices
by Andreas Exarheas|Rigzone Staff|Friday, March 13, 2020
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Apache Responds to Low Oil Prices
Apache Corporation has announced multiple actions in response to the current oil price environment.
Apache Corporation has announced multiple actions in response to the current oil price environment.
The company revealed that it will reduce its Permian rig count to zero “over the coming weeks” and outlined that “activity reductions” are planned in Egypt and the North Sea.
Apache has also reduced its 2020 capital investment plan to a range of $1-1.2 billion, from a range of $1.6-1.9 billion, and its board of directors has approved a reduction in the company’s quarterly dividend per share from $0.25 to $0.025.
The company said it will use the $340 million of cash retained annually from the dividend reduction to “further strengthen its financial position”.
“We are significantly reducing our planned rig count and well completions for the remainder of the year, and our capital spending plan will remain flexible based on market conditions,” John J. Christmann IV, Apache’s chief executive officer and president, said in a company statement.
Apache operated an average of eight rigs in the Permian during the fourth quarter (4Q) of last year, according to its latest results statement. The company’s Permian production was said to have averaged 288,000 barrels of oil equivalent per day (boepd) during 4Q, including oil production of 103,000 barrels per day.
Internationally, Apache operated an average of 13 rigs in 4Q, its latest results statement shows. Egypt averaged nine rigs and the North Sea averaged three rigs. Apache reported production of 189,000 boepd internationally in 4Q.
The company registered a loss of $3 billion, or $7.89 per diluted common share, during 4Q. For the full-year 2019, Apache reported a loss of $3.6 billion, or $9.43 per diluted common share. Apache reduced capital investment in 2019 by 23 percent over 2018.