Whether it’s adding value to properties acquired by others or adding value to acreage we have leased or purchased from others, Apache’s relentless pursuit of opportunity in its DNA. Since the 1990s, Apache’s outstanding performance in adding value to acquired properties inspired the phrase “acquire and exploit” – a term associated with our continuing exploitation expertise.
At Apache, we believe how acquired properties or acreage are exploited and developed is just as important as the initial purchase price. With so much history, we are often asked what our formula is. We do not know more than any seller, but we have a culture and management systems that empower our people to extract and measure the highest value.
Our mission is to grow a profitable global exploration and production company in a safe and environmentally responsible manner for the long term benefit of our shareholders. We also have a core value to drive success with a sense of urgency. Both statements define who we are and our drive to capture value.
In most acquisitions, Apache teams are executing capital projects on acquired producing properties or acreage the day after closing. We are looking for ways to increase production and reserves through more efficient operations – blocking and tackling - such as reducing pipeline bottlenecks, installing compression, adjusting fluid levels, re-completing to different producing zones, fixing downhole equipment and drilling new wells. Apache’s operating personnel are provided incentives to “beat the curve,” because we have found over the years that the most outstanding returns on transactions are realized when we significantly outperform the production decline curve assumed at the time of the transaction.
Apache has a central group of reservoir engineers that track and monitor every capital project. Reports are generated every month that provide ongoing project results including rate of return, costs, and production. These reports give feedback to operating personnel that enable them to adjust ongoing capital programs in real time toward the highest return projects.