Apache 1Q15 Earnings Call Notes

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Decreased rig count by 77%

“we decreased our North American rig count by 77%, from 65 rigs on December 31 to 15 rigs by the end of the first quarter. We are highly focused on reducing all elements of our cost structure.”

Budgeted for $50 WTI

“We have budgeted conservatively at $50 WTI for the year. And while first quarter oil prices came in a little below that level, the second quarter is off to a good start. Should oil prices stabilize at these higher levels and cash flow increase accordingly, we are well-positioned to ramp up the drilling program in an efficient and cost-effective manner.’


” It’s great to be a member of the Apache team. And I have to say, it’s everything I hoped it would be and more. In my three months in the role, I have spent most of my time getting to know the business and the people and understanding how we do things. I have been very impressed with our team.’

Now planning to stick with international operations

“he key objectives with us on our international portfolio were two. One, unload our LNG, which we have done, signed, closed. And then we announced the sale of Australia. I think that leaves us with a portfolio now that we plan to stick with, we’re excited to have. We’re 60% to 70% North America. If you look at our North Sea and our Egypt operations, we’ve got world-class people there as well as leading positions.”

Even through the Arab spring, never skipped a beat in Egypt

” I think clearly the investment area there is improving, and if you go back, even though the Arab Spring, we’ve never skipped a beat. So, it’s in general, the investment has always been good for us. We’ve got a great relationship with the Egyptian government, and we did set record times and bring in Ptah and Berenice on, but we’ve been that way in the past. So, lot of advantages. It’s, clearly the sentiment is turning, and like the rest of our business we’re excited about it, and that’s one of the options we’ll have on the table as we start to think about if we have incremental cash flow, where would we put it.”