Houston-based APA Corp. said in its fourth quarter earnings report that as natural gas prices decline it will shift its focus this year to oil development. John J. Christmann IV, president and CEO, said Feb. 22, “This year our emphasis will be on higher margin oil development, and we will continue to drive improvements in safety, operational execution and cost management.”
Capital expenses of $2.0 billion to $2.1 billion are expected to produce growth in oil volumes of 10 percent and overall volume growth of 4-to-5 percent. APA is allocating 43 percent of capex for 2023 to U.S. with 2 rigs in southern Midland Basin and 3 in Delaware Basin. APA spent $1.8 billion in 2022 and produced 396,000 boed (up 2 percent), including 212,007 boed in U.S. (down 8 percent).
APA curtailed natural gas and liquids volumes in Alpine High in Permian Basin during January and reportedly is assessing prices in the area daily.