Apache Corp (APA)

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Apache says no material impact from S&P credit downgrade to 'junk'
Mar. 27, 2020 8:01 AM ET (APA)By: Carl Surran, SA News Editor2 Comments
Apache (NYSE:APA) says it does not expect to see a material impact on its financial position, liquidity or business strategy due to yesterday's downgrade of its credit by Standard & Poor's, which cut the rating by two notches to BB+ from BBB with a negative outlook.
The company says it will post ~$650M in letters of credit related to asset retirement obligations in the U.K. North Sea.
Apache says it has "ample liquidity and a very manageable bond maturity profile for the next five years," and notes recent actions to protect its balance sheet and cash flows, including a 54% capex cut, lower dividends and cost structure reductions.
Apache says it has a $4B credit facility, is not subject to borrowing base re-determinations, has no covenants that are triggered by ratings agency actions, and includes a $2B committed sublimit for letters of credit, which will easily accommodate North Sea asset retirement obligation postings.
APA -2.4% pre-market.