Apache Corp. (NYSE: APA) said Feb. 7 it expects to spend much less on exploration and production this year than originally planned, becoming the latest shale producer to cut capital spending amid a fall in crude prices.
The U.S. oil and gas company set a capex for oil production of $2.4 billion, saying it was a "significant reduction" from both its earlier 2019 capex and its actual investment in 2018.
In October, the company had announced a $3 billion capex for 2019.
Apache projected oil production to grow 6% to 10% from fourth-quarter 2018 to fourth-quarter 2019 on an adjusted basis. It is set to report fourth-quarter 2018 results later this month.
The revised outlook comes as oil prices have plunged nearly 30% since their highs in October, pushing some oil producers to shrink their capex plans for 2019.
Tumbling crude prices have taken a bite out of companies' cash flows, suggesting a slow down in activity.
Apache said it expects production for 2019, excluding its operations in Egypt, to reach the mid-point of its forecast of between 410,000 barrels of oil equivalent per day (boe/d) and 440,000 boe/d.
The company's 2019 production plan would be cash flow-neutral, Apache said.
Upstream A&D firm Detring and multinational investment bank Baird are teaming up to provide strategic advisory and M&A advisory services to midstream energy companies.
The board of a government privatization committee known as PPI met on Aug. 21 to include new companies in a list of potential privatizations.
Concurrent with the Sabalo acquisition, EIV Capital and multiple co-investors “substantially increased” their equity commitment for H2O Midstream to pursue additional growth in the Permian Basin.