Recent deepwater exploration success in Suriname has introduced a potential transformative opportunity for Apache. Whereas a broad-based portfolio streamlining effort over the past decade had left the company with an emphasis on US unconventionals (primarily in the Permian Basin), balanced by cash flow-generative output from mature positions in Egypt and the UK North Sea, the introduction of a deepwater oil resource base in the emerging Guyana Basin (via discoveries from a position that Apache entered in 2012) creates the potential for a high-growth, high-return opportunity in one of the most prospective areas globally. This emerging opportunity, coupled with the oil price collapse in early 2020, has led to a shift in Apache’s near-term strategy. Whereas the focus in recent years had been on the Permian Basin, Apache has reallocated its revised 2020 capex budget (which is 37% below initial guidance for the year) to emphasize its non-US positions, with the international portfolio now receiving a 60% share of total spending.
Upstream Strategy Assessment – Apache Corporation (NASDAQ: APA): 2020
14 Aug 2020 - Upstream Companies and Transactions | Profile
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