Reuters


U.S. oil producer Apache Corp APA.O said on Thursday it plans to keep project spending next year flat or slightly lower than this year’s $1 billion spending rate, as the COVID-19 pandemic continues to slash global oil demand.

 

Apache Corp prepared to cut costs if oil prices remain low, CEO says- oil and gas 360

The company has two hydraulic fracturing crews in the Permian Basin shale field to work on wells that have been drilled already but not fracked, but Apache has no plans for a “sustained” drilling program in the field, Chief Executive John Christmann said on a call with analysts.

If U.S. oil price futures remain below $40 per barrel “materially,” Apache is prepared to reduce capital spending more, Christmann said.

Apache is prioritizing spending in its discoveries off the northeastern coast of Suriname over the Permian Basin, Christmann said. “We’re making a long-term decision because we think there’s going to be much, much greater benefit,” he said.

Shares rose 4.52% in trading on Thursday to $9.40. The stock is down 70% year to date.

After the market close on Wednesday, the company posted a net loss of $4 million, or 2 cents per share, for the third quarter, compared with a loss of $170 million, or 45 cents per share, a year earlier.

On an adjusted basis, it lost 16 cents per share, beating analysts’ estimates of a loss of 35 cents, according to Refinitiv data.


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