Apache Corporation Doubles Estimate of Annual Cost Savings From Recent Organizational Redesign
April 01 2020 - 6:55AM
Apache Corporation (NYSE, Nasdaq: APA) today provided an update
regarding the cost savings associated with its previously announced
organizational redesign. Apache now expects to deliver an
annualized G&A and LOE cost reduction in excess of $300
million, up from an original target of $150 million. Approximately
$225 million of the identified savings, which includes the impact
of severance and reorganization costs, will be achieved in 2020.
“We have made substantial progress on our organizational
redesign initiative, which began in the fall of 2019. This is
enabling more flexible resource allocation and increased
collaboration while delivering cost savings that are critical in
the current environment,” said John J. Christmann, Apache’s chief
executive officer and president. “Together with our talented team
members and diverse asset portfolio, our new organizational
structure is already enabling Apache to be more agile and respond
quickly to changing commodity price environments.”
Apache announced an organizational redesign effort in October of
2019 to streamline the business and improve operational
efficiencies. The new organization goes into effect today, April 1,
2020.
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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