Hurricane Harvey operational update

Hurricane Harvey operational update

HOUSTON, Sept. 5, 2017 -- Apache's Houston headquarters reopened on Tuesday, Sept. 5, 2017. While the Houston offices did not sustain any significant damage during the storm, Apache decided to close its headquarters during the week of Aug. 28, 2017, out of an abundance of caution and to ensure the safety of its employees.

Previous plans by Apache leadership to attend the Barclays's CEO Energy-Power Conference this week have been changed so that leadership can remain in Houston for the office reopening and focus on employee initiatives and operations in the wake of Harvey.

To date, Apache has experienced some minor direct impacts from the storm in its Gulf of Mexico and Lower 48 regions, including production shut-ins between 1,000 and 2,000 barrels of oil equivalent per day beginning Aug. 23, 2017. Operations resumed early last week as the storm passed, and production has restarted or is in process to return online. Apache's operations in the Eagle Ford play in Burleson and Brazos counties experienced a brief, yet negligible, interruption.

Hurricane Harvey has also impacted third-party downstream infrastructure on the Gulf Coast and associated pipeline operations. As a result, several key markets for Permian Basin oil and natural gas liquids were temporarily disrupted by force majeure declarations, which also impacted associated natural gas volumes. Approximately 2 to 3 percent of Apache's gross operated sales volumes from the Permian Region have been impacted since Aug. 28, 2017. The company has taken steps to mitigate potential supply chain and downstream disruptions to its Permian sales volumes, however, further curtailments are still possible.

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