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Apache Corp. reduces 2020 capital investment plan

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Oilfield Technology,

Apache Corp. has reduced its 2020 capital investment plan to a range of US$1 billion to US$1.2 billion from a previous range of US$1.6 billion to US$1.9 billion.

Over the coming weeks, the company will reduce its Permian rig count to zero, limiting exposure to short-cycle oil projects. Activity reductions are also planned in Egypt and the North Sea. In Suriname, upon the conclusion of operations at the Sapakara West-1 exploration well, the company will proceed, as planned, to a third exploration prospect.

Additionally, Apache’s board of directors has approved a reduction in the company’s quarterly dividend per share from US$0.25 to US$0.025, effective for all dividends payable after 12 March 2020. The company will use the US$340 million of cash retained annually from the dividend reduction to further strengthen its financial position. Apache has ample liquidity through its US$4 billion undrawn revolver and considerable flexibility to manage the US$937 million of bonds maturing between February 2021 and January 2023.

“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,” said John J. Christmann IV, Apache’s CEO and President. “We are also further reducing operating and overhead costs as we continue to implement our corporate redesign programme, which began in the fall of 2019. These decisive actions will benefit Apache as we navigate these challenging market conditions.”

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