Apache trims upstream capital budget for 2019

Feb. 8, 2019
Houston independent Apache Corp. reduced its preliminary upstream capital budget for 2019 by 20% but expects full-year total adjusted production to trend to the midpoint of the projected 410,000-440,000 boe/d target—a 3% reduction from previous estimates.

Houston independent Apache Corp. reduced its preliminary upstream capital budget for 2019 by 20% but expects full-year total adjusted production to trend to the midpoint of the projected 410,000-440,000 boe/d target—a 3% reduction from previous estimates.

The $2.4-billion budget—excluding planned consolidated activities of its Altus Midstream Co. partnership with Kayne Anderson Acquisition Corp.—is a substantial reduction from the preliminary $3-billion estimate, as well as from the company’s actual upstream investment level in 2018 (OGJ Online, Aug. 9, 2018).

Of the $2.4 billion, 70-75% will be allocated within the US where the company projects production growth of 12-16% and 5% Permian basin oil growth from fourth-quarter 2018 to this year’s fourth quarter. Fourth-quarter 2018 and full-year 2018 results are expected on Feb. 28.

Over the same period, Apache expects to generate production increases of 6-10% on a total company-adjusted basis, while international adjusted production is projected to be down slightly.

Contact Mikaila Adams at [email protected].