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APA Corp. curtailed more natural gas and NGL output than previously anticipated due to commodity price weakness.
APA, the parent company of Apache Corp., curtailed approximately 103 MMcf/d of U.S. natural gas production during the third quarter “in response to weak or negative Waha hub prices,” the company updated investors on Oct. 9.
The company also curtailed an estimated 10,000 bbl/d of NGL production during the quarter, which were mostly associated with voluntary gas curtailments. In July, APA said it anticipated curtailing around 90 MMcf/d of gas production and around 7,500 bbl/d of NGL output.
APA’s third-quarter U.S. natural gas production realized average sales prices of $0.15/Mcf; the company realized $3.30/Mcf on sales of its international gas volumes.
The company’s U.S. NGL volumes sold at average realized prices of $20.75/bbl, compared to international NGL pricing of $45.75/bbl.
During the third quarter, APA also sold non-core assets in the Permian’s Central Basin Platform for $950 million.
The divested properties had an estimated net production of 21,000 boe/d (57% oil) at the time of the announcement.
APA is engaged in a divestiture campaign after closing a $4.5 billion acquisition of Permian E&P Callon Petroleum on April 1.
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