Apache announced that the company will be taking multiple actions being taken in response to the current oil price environment. The changes include adjustments to its 2020 capital investment plan which drops 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, Apache indicated that it would 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.
The company said however that 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 March 12, 2020.
According to Apache, CEO John J. Christmann IV, “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.”
“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” he added.