MIDLAND, TX – The Houston oil and gas producer Apache Corporation told state workforce officials on Thursday that its layoffs of 85 employees will began Wednesday and will continue through May 18. The affected employees currently work at Apache’s facility at 303 Veterans Airpark Lane in Midland.
This move comes after Apache recently cut $650 million, or about a third, from its capital budget used to fund oil exploration and production in 2020. The company also cut its quarterly dividend by 90 percent to 2.5 cents per share, down from 25 cents.
Apache Chief Executive John Christmann IV said in a statement last week, “We are significantly reducing our planned rig count and well completions for the remainder of the year, and our capital spending plan will remain flexible based on market conditions".
Apache and eight of the most prolific shale drillers in the Permian Basin have cut $9.2 billion from their planned capital budget for this year, foreshadowing a sharp decline in drilling activity and layoffs. Apache is the eighth most active driller in the Permian Basin with 179 drilling permits in 2019. It is the 11th most active shale driller statewide.