Apache Corporation Announces Temporary Deferral of Alpine High Natural Gas Production in Response to Recent Pricing at Waha Hub
- Production deferrals designed to positively impact Apache’s cash flow in the near term
- No change expected to Altus Midstream Company’s (Altus) 2019 EBITDA guidance range
- Cryogenic processing buildout at
Alpine Highis progressing ahead of schedule Reiterates Alpine High2019 exit rate guidance of greater than 100 thousand barrels of oil equivalent per day (MBoe/d)
“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.”
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “guidance,” “outlook,” “projects,” “will,” and similar references to future periods. These statements include, but are not limited to, statements about future plans, expectations, and objectives for Apache and/or Altus. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See "Risk Factors" in our 2018 Form 10-K filed with the Securities and Exchange Commission for a discussion of risk factors that affect our business, as well as our Quarterly Reports on Form 10-Q and other public filings and press releases. Any forward-looking statement made by Apache in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Apache undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future development or otherwise, except as may be required by law.
Investor: (281) 302-2286
Media: (713) 296-7276 Phil West
Source: Apache Corporation