Apache Corporation announced this week that it plans to reduce its Eagle Ford rig count from 12 (December) to four by the end of the month. Further reductions include plans to operate one to two rigs in the Eagle Ford during 2015. These cuts are part of the bigger forecast for the company that includes a 70 percent reduction in rigs companywide.
The company reported a fourth-quarter 2014 net loss of $4.8 billion compared to a profit last year of $174 million. Despite huge losses and future uncertainty, the report claimed that the company is exciting the year with “strong operational momentum”. Additional Apache news for 2015 includes a capital budget of $2.1 to $2.3 billion and estimated production to remain flat.
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This announcement came only a few weeks after former Apache president and chief executive officer, Steven Farris stepped down from his position. The abrupt announcement on January 20, 2015 followed Ferris’ 25 years of service to the company. The new leadership faces tough decision in the midst of the current oil price uncertainty and where to focus its resources.
Read full press release at apachecorp.com