Apache 2Q16 Earnings Call Notes

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Apache (APA) John J. Christmann on Q2 2016 Results

I don’t see us departing from conservative budgeting approach in 17

“The first thing I would say is we’re going to be a member of the returns club, is the club we want to be focused in and focused on full cycle, full cost, fully burdened returns. And that’s the club we’re focused in. I think above $45 this year, you would have seen our volumes grow and been able to do that. So as I think about joining a $50 club, we probably already were in the $50 club. So we just haven’t planned accordingly. We budgeted $35 this year, and you’ve seen us let a little bit of capital out. So I think the market today is more constructive than it’s been, both on oil and natural gas. I think it got a little bit ahead of itself here in the last few months, and we’ve seen it come back as we went back and touched $40. I think we’ll see what kind of price band we look at as we get into 2017. I don’t see us departing from a conservative budgeting approach, gearing things to the low end of the band.”