Because of last night's blow out in the national championship & because I think John Christmann needs to go to jail (he maybe just in front of Scott Sheffield who bought his son's company that was heading to oblivion), I put the following together on Apache.
- I'll never hate on someone making money, except when that money comes from laying of your entire company... Christmann has paid himself $57.3MM (doesn't even include 2020, that is just 2016-2019)
- And he has managed to make his fortune while managing to bet his entire company on a play (Alpine High) that everyone in the Permian new was crap & stranded crap with ZERO infrastructure to get the crap to market... But maybe he is honest & transparent to share holders (see Fig 2.)
Alpine High; the most expensive pet rock in history
- As of June there were 15 DUC's at Alpine High, in November they completed 3 of them and watch, it will be sold as a Tier-1 gas asset soon enough. However, it's going to be pretty hard to buy into the hype when your mgmt has already closed your Alpine High field office (complete with Alpine Trees & a For Sale or Lease sign)
- When a company creates a logo for a discovery, know that this is peak insanity & this company has a stupid strong marketing/investor relations group because they magically get everyone to forget about....
Putting the "E" in E&P; other failed Apache "discoveries"
- Before Alpine High there was the Granite Wash, I wonder how many of those 14,000 drilling locations they've used up the last 8 years?
But they have so much other Permian acreage
- Newtoboard's quote is my favorite;
"if you wanted to find the core of the Midland or Delaware, look at what APA doesn't own. That's the core."
*Note that most of the Delaware position in Loving county is shallow vertical fields & they don't own rights to the Bone Spring or Wolfcamp for unconventional development
Suriname will be different...
Perhaps... But when I hear 900' of pay in Suriname...
Lastly, don't forget about the new APA Corporation
- APA Corporation is a new holding company that will own Suriname
- Apache Corp (different), will hold US, UK, & Egypt assets
- I assume they are taking the playbook of Oxy with CRC...load one of these with debt & set it on fire
End of rant.
I know a lot lives that were destroyed by this companies management... which sadly use to be respectable