Houston-based Apache Corp. (NYSE: APA) plans to cut spending by reducing its 2015 North American onshore budget to $4 billion, down $1.4 billion from 2014’s budget of $5.4 billion. Consequently, Reuters reports the company is set to exceed its 2014 budget and possibly end the year at $6.5 billion. Also, after adjusting for sales of assets, it expects a 12 to 15 percent increase in oil and natural gas liquids output in North America.
As a result of declining oil prices, Reuters reports that many companies have already cut their budgets, and more are expected to follow.
Investors have pushed Apache to focus primarily on US shale production and further divest from its international assets. Last week, Apaches announced two deals to sell $1.4 million in assets.