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.
Oklahoma operator looks to shed Canada and Barnett assets.
Vanguard Natural Resources filed for Chapter 11 protection on April 1, marking the second time the Houston-based E&P has entered bankruptcy since the 2014 oil crash.
Oil well productivity in Texas's Permian Basin—the country's largest oil field—is falling, and the number of drilling rigs operating in the U.S. has declined for six straight weeks.