Apache Corporation Announces Revised Capital Guidance and Dividend Reduction
March 12 2020 - 8:00AM
Apache Corporation (NYSE, Nasdaq: APA) today announced multiple
actions being taken in response to the current oil price
environment. The company reduced its 2020 capital investment plan
to a range of $1.0 billion to $1.2 billion from a previous range of
$1.6 billion to $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 $0.25
to $0.025, effective for all dividends payable after today, March
12, 2020. The company will use the $340 million of cash retained
annually from the dividend reduction to further strengthen its
financial position. Apache has ample liquidity through its $4
billion undrawn revolver and considerable flexibility to manage the
$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 chief executive officer and president. “We
are also further reducing operating and overhead costs as we
continue to implement our corporate redesign program, which began
in the fall of 2019. These decisive actions will benefit Apache as
we navigate these challenging market conditions.”
About Apache
Apache Corporation is an oil and gas exploration and production
company with operations in the United States, Egypt and the United
Kingdom and exploration activities offshore Suriname. Apache posts
announcements, operational updates, investor information and all
press releases on its website, www.apachecorp.com.
Forward-looking statements
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Forward-looking
statements can be identified by words such as “anticipates,”
“intends,” “plans,” “seeks,” “believes,” “continues,” “could,”
“estimates,” “expects,” “guidance,” “may,” “might,” “outlook,”
“possibly,” “potential,” “projects,” “should,” “will,” “would,” and
similar references to future periods, but the absence of these
words does not mean that a statement is not forward-looking. These
statements include, but are not limited to, statements about future
plans, expectations and objectives for Apache’s operations,
including statements about our capital plans, drilling plans,
production expectations, asset sales, and monetizations. While
forward-looking statements are based on assumptions and analyses
made by us that we believe to be reasonable under the
circumstances, whether actual results and developments will meet
our expectations and predictions depend on a number of risks and
uncertainties which could cause our actual results, performance,
and financial condition to differ materially from our expectations.
See "Risk Factors" in our 2019 Form 10-K and in our quarterly
reports on Form 10-Q filed with the Securities and Exchange
Commission ("SEC") for a discussion of risk factors that affect our
business. Any forward-looking statement made by Apache in this news
release speaks only as of the date on which it is made. Factors or
events that could cause our actual results to differ may emerge
from time to time, and it is not possible for us to predict all of
them. Apache undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future development or otherwise, except as may be required by
law.
ContactsInvestor: (281)
302-2286 Gary
ClarkMedia: (713) 296-7276
Phil
West
Website: www.apachecorp.com
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