Apache Announces 2019 Capital Budget and Production Outlook
- Establishes 2019 upstream capital budget of
$2.4 billion, 70 to 75 percent of which will be allocated within the United States
- Expects full-year 2019 total adjusted production to trend to the midpoint of previously disclosed guidance range of 410,000 to 440,000 barrels of oil equivalent (BOE) per day
- Projects 6 to 10 percent total adjusted production growth, 12 to 16 percent U.S. production growth, and 5 percent Permian oil growth from fourth-quarter 2018 to the fourth-quarter 2019
- Targets cash-flow neutrality, inclusive of dividend, at an assumed WTI oil price of
- Plans to return 50 percent or more of any free cash flow generated to shareholders
The company expects to generate strong fourth-quarter 2018 to fourth-quarter 2019 production increases of 6 to 10 percent on a total company-adjusted basis, 12 to 16 percent in
Assuming an average WTI oil price of
“Our 2019 plan is designed to optimize value for Apache shareholders through long-term, returns-focused development of oil, natural gas and natural gas liquids (NGLs), while advancing certain high-impact exploration projects. Apache is committed to delivering this planned activity set and production outcome, while maintaining a strong returns focus, continuing our dividend payment and remaining cash flow neutral at plan prices. As we have demonstrated in the past, to the extent that commodity prices fall, we have the flexibility and intention to reduce our activity set to preserve returns and target cash flow neutrality,” said
“We believe Apache offers a very competitive investment proposition both within the E&P sector and relative to other sectors in the market. In a flat oil price environment, we believe we can deliver a combination of sustainable production and operating cash flow growth, strong returns, a stable dividend that currently yields more than 3 percent, and return at least 50 percent of any free cash flow to our shareholders. Additionally, Apache offers significant upside value potential through its current 100 percent ownership in Block 58 offshore Suriname, as well as its portfolio of unconventional exploration projects in the Lower 48,” said Christmann.
Since the beginning of 2015, Apache has paid out more than
Apache will discuss the 2019 outlook and elements of its longer-term view in more detail on its fourth-quarter 2018 results conference call, scheduled for
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “guidance,” “outlook,” “projects,” “will,” and similar references to future periods. These statements include, but are not limited to, statements about future plans, expectations, and objectives for Apache, including statements about our capital plans and production expectations. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See "Risk Factors" in our 2017 Form 10-K filed, and 2018 Form 10-K when filed, with the
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- Upstream Capital Budget: Includes exploration, development, gathering, transmission, and processing capital, capitalized overhead, and settled asset retirement obligations, and excludes capitalized interest, non-cash asset retirement additions and revisions, and
Egyptnoncontrolling interest, in each case associated with our upstream business.
- Adjusted production excludes production attributable to completed asset divestments, noncontrolling interest in
Egypt, and Egypttax barrels.
Source: Apache Corporation