Apache Corp. expects to see savings in excess of $300 million due to the organizational redesign it initiated in October 2019, up from its original target of $150 million. Approximately $225 million of the identified savings, which includes the impact of severance and reorganization costs, will be achieved in 2020.
“We have made substantial progress on our organizational redesign initiative, which began in the fall of 2019,” said John J. Christmann, Apache President and CEO. “This is enabling more flexible resource allocation and increased collaboration while delivering cost savings that are critical in the current environment. Our new organizational structure is already enabling Apache to be more agile and respond quickly to changing commodity price environments.”
The new organization went into effect on 1 April 2020.
Apache had previously cut $650 million from its capital budget in the wake of the oil price drop spawned in part by the COVID-19 outbreak. The company said earlier this month that it planned to significantly reduce its planned rig count and well completions for the remainder of 2020.