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. Read more about Apache Corp. in the Eagle Ford
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.
Related: ConocoPhillips Reports Q4 Losses
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.
“Since our Nov. 20th North American Update, oil and gas prices have decreased substantially, prompting us to act quickly and decisively to reduce activity levels and reset our well cost structure. We have reduced our rig count from an average of 91 rigs in the third quarter of 2014 to an estimated 27 rigs by the end of this month. We have also reduced our frac crews by approximately 50 percent during the same time period and are delaying some well completions until service costs decrease materially.”
Read full press release at apachecorp.com