Apache Unveils Restructuring Plans

By Chelsey Dulaney 

Apache Corp. unveiled plans Monday to reorganize its business in a bid to become more nimble and cut down on costs.

"This new structure will enable us to allocate resources and personnel expediently as industry conditions dictate," said Chief Executive John Christmann.

Houston-based Apache plans to reorganize its segments into three regions: the Permian Region, the Houston region, and an international and offshore region that will include its Egypt, North Sea and Gulf of Mexico businesses.

As part of the restructuring, Apache said it will close its regional office in Tulsa, Okla., and relocate a number of employees. Apache said other "organizational optimization" is also underway.

Apache didn't say how much it expects the efforts to save.

Shares of Apache, down 5% this year, edged down 0.6% to $59.46 a share in morning trading.

Apache has been working to refocus on its U.S. shale drilling business, divesting itself of international assets. It agreed earlier this year to sell its Australian unit for $2.1 billion to a group of private-equity investors.

The company also recently completed the sale of its stakes in two liquefied natural gas projects in Canada and Australia to Woodside Petroleum Ltd. for $2.75 billion.

Like many other U.S. energy companies, Apache has cut back on drilling rigs and has delayed well completions.

In its first quarter, Apache swung to a loss on impacts from low crude oil prices that contributed to a sharp decline in revenue and a big write-down.

Write to Chelsey Dulaney at [e-mail]

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