Apache Corp. is closing its San Antonio office and eliminating more than 270 jobs as part of a reorganization process designed to cut costs.
Source: Houston Chronicle
The Houston-based oil and gas producer had a difficult 2019 as its stock value plunged more than 50 percent from fall 2018 through a recent December low. But Apache’s stock has taken a big turn up this week with the discovery of oil off the coast of Suriname in South America.
Apache said the San Antonio closing and the 272 job cuts will be finalized in early March, according to a letter filed with the Texas Workforce Commission. Apache didn’t immediately respond to a request for comment Thursday morning.
The closing of the San Antonio office is part of a plan the company announced late last year to cut an undisclosed number of jobs and further centralize its organization to save an extra $150 million per year. In addition, Apache plans to slash 2020 capital spending by up to 20 percent — a cutback of $250 million to $500 million. Apache most recently reported a larger-than-expected $170 million loss for the third quarter.
While Apache has a notable presence in South Texas’ Eagle Ford shale closer to San Antonio, the Houston producer has increasingly leaned on growth in West Texas’ booming Permian Basin.
Apache could theoretically manage its Eagle Ford operations from Houston or even its West Texas hub.
