NEW YORK (TheStreet) -- Shares of Apache Corp. (APA) are up 1.54% to $73.16 after it was reported that the company plans to reduce spending in North America by 25% next year as falling oil prices make drilling prospects less profitable on the continent, according to Bloomberg.
The Houston-based oil and gas company follows producers including ConocoPhillips (COP) that plan to cut budgets and relocate rigs into profitable regions as prices fell four consecutive months to $74.52 a barrel today, Bloomberg said, adding that this will allow them to boost production even as they spend less.
Apache, which is seeking to sell or spin off international assets from Egypt to Australia to focus on the U.S. and Canada, will spend $4 billion on wells, the company said today in a statement.
Separately, TheStreet Ratings team rates APACHE CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate APACHE CORP (APA) a HOLD. The primary factors that have impacted our rating are mixed--some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity."