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Apache slashes 2020 capital guidance, curbs quarterly dividend from SNL Daily Gas Report Apache slashes 2020 capital guidance, curbs quarterly dividendByline: Dyna Mariel Bade In response to weak oil prices, Apache Corp. decreased its 2020 capital investment plan to a range of $1.0 billion to $1.2 billion, from the previous range of $1.6 billion to $1.9 billion. The oil and gas producer will also reduce its quarterly dividend to 2.5 cents per share, from the previous dividend of 25 cents per share, according to a March 12 news release. The dividend is payable after March 12. Apache said it will use the $340 million of cash retained annually from the dividend production to boost its financial position. "We are also further reducing operating and overhead costs as we continue to implement our corporate redesign program, which began in the fall of 2019," John Christmann IV, Apache CEO and president, said in the release. "These decisive actions will benefit Apache as we navigate these challenging market conditions." The corporation has $4 billion of undrawn revolver. The corporation said it is able to manage the $937 million of bonds that will mature between February 2021 and January 2023. In addition, Apache said it plans to drop its Permian rig count to zero and reduce activities in Egypt and the North Sea. The corporation, however, will still proceed with a third exploration prospect in Suriname, upon completion of operations at the Sapakara West-1 exploration well. |
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