Apache initiates natural gas production volume deferrals from Alpine High play
Apache announced that it initiated natural gas production volume deferrals from its Alpine High play in late March, in response to extremely low prices at Waha Hub. Current deferrals represent approximately 250M cubic feet, or MMcf, per day of gross gas production. "We anticipate relatively wide and volatile natural gas price differentials in the Permian Basin until the Gulf Coast Express pipeline enters service. As a long-term returns-focused company, we know that production deferrals such as this will improve financial performance despite the impact on near-term volumes. This is the proper approach from both an environmental and economic perspective relative to other industry practices such as flaring or selling associated gas at a negative or unprofitable price," said the company. Apache will further address the impact of deferrals in its second-quarter Alpine High production guidance with the release of its Q1 results on May 1. Planned rig count and well completions are unchanged, and the company is reiterating its year-end 2019 Alpine High exit rate guidance of more than 100 MBoe per day.