Apache stock to become exclusive to Nasdaq
Houston-based oil and gas company Apache Corporation has chosen to list its common stock solely on the Nasdaq Stock Market beginning 9 June 2020.
Apache said on Wednesday that it would discontinue the listing of its common stock on the New York Stock Exchange and the Chicago Stock Exchange after the market closes on 8 June 2020.
Also, the company will discontinue listing its 7.75 per cent notes due 2029 from the New York Stock Exchange on the same date, and such notes will no longer be listed on any national securities exchange.
John J. Christmann IV, Apache’s president and CEO, said: “We’re pleased to continue our relationship with Nasdaq through this exclusive listing. Apache has been listed on Nasdaq since 2004, and our shareholders have benefited from efficient, orderly trades on its electronic platform.
“This decision is part of our ongoing initiatives to simplify processes and increase efficiency; Nasdaq provides premium services that allow us to reach investors in a cost-effective manner”.
Nelson Griggs, president of Nasdaq, added: “[…] Apache contributes to global progress by helping meet the world’s energy needs. We are proud to be Apache’s primary listing exchange and continue to provide the company with advisory tools, market analytics and access to enhanced liquidity supported through our superior market model”.
Cost-effectiveness and cost-saving key for Apache
The past several months for Apache have all been about cost-effectiveness and cost-saving.
In March, the company announced a set of measures in response to the effect of the coronavirus outbreak on global oil demand and the historic plunge of oil prices.
Apache stated at the time that it reduced its 2020 capital investment plan to a range of $1 billion to $1.2 billion from a previous range of $1.6 billion to $1.9 billion.
The Houston-based firm also opted to reduce its Permian rig count to zero, limiting exposure to short-cycle oil projects with activity reductions planned in Egypt and the North Sea.
The following month, Apache stated that it would be doubling its estimate of annual cost savings stemming from a recent organizational redesign.
The oil and gas company expects to deliver an annualized general and administrative (G&A) and level of effort (LOE) cost reduction above $300 million, up from an original target of $150 million.
At the time, Apache said it would achieve around $225 million of the identified savings in 2020, which includes the impact of severance and reorganization costs.
It is worth noting that the only drilling program not to be hit by either capex slashing or decrease of activity was in Suriname where the company made a significant oil discovery at the Sapakara West-1 well.
This was the second discovery in the country for Apache since the start of the year. The first one was made by the Maka Central-1 well in January.
Regardless of the cuts made by the company, it will be going forward with the third Surinamese exploration prospect as planned.