“As far back as two years ago, Apache foresaw the potential for gas takeaway constraints in the
“We anticipate relatively wide and volatile natural gas price differentials in the
“We will closely monitor daily pricing and return our gas to sales when it is profitable to do so. We are carefully managing these actions so there is no adverse impact on long-term wellbore integrity or reservoir productivity and look forward to returning this production to market as soon as practical,” said Christmann.
Apache will further address the impact of deferrals in its second-quarter
Altus will update its 2019 gathering and processing volumes when Apache has more clarity on the potential duration and magnitude of future production deferrals. Apache is assisting Altus in managing its cost structure and the services it provides directly to Altus. At this time, no change is expected to Altus’ 2019 EBITDA guidance range.
Cryogenic processing installation progress at
Installation of the first two processing units at Altus’ Diamond Cryogenic Processing site is proceeding on-budget and ahead of schedule. The first unit is currently commissioning and is expected to enter service in May, while the second cryo unit is now expected to be fully operational in July.
Christmann commented, “The exceptional progress that Altus has made is good news for Apache. Accelerated cryo start-up will enable us to bring any remaining deferred rich gas volumes back on-line and benefit from the significant revenue and margin uplift associated with deep-cut NGL recovery, offsetting weak Waha Hub gas pricing.”
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Source: Apache Corporation