SAN DIEGO & HOUSTON–()–Shareholder rights law firm Robbins LLP is investigating Apache Corporation (NASDAQ: APA) on behalf of shareholders to determine whether certain Apache officers and directors violated the Securities Exchange Act of 1934 and breached their fiduciary duties to the Company. Apache is an independent energy company that explores for, develops and produces natural gas, crude oil and natural gas liquids. One of Apache’s purported key “core growth areas” is the Permian region in West Texas and New Mexico.

If you suffered a loss due to Apache Corporation’s misconduct, click here.

Apache Corporation (APA) Misled Shareholders About the Viability of its Alpine High Resource Play

On September 7, 2016, Apache announced the discovery of a new resource play in the Permian Basin called Alpine High that was rich in oil and gas reserves. Apache touted the discovery as providing a “large inventory of repeatable, high-value drilling opportunities” and reinforced these sentiments throughout 2016, 2017 and 2018. Notably, the Company’s quarterly financial results for 2018 were positive, with Apache CEO John J. Christmann IV stating that “2018 will be a year in which Apache differentiates itself operationally, particularly in the Permian Basin.” On August 1, 2018, Christmann highlighted “another great quarter” as it exceeded guidance and raised the 2018 outlook. However, these statements were materially false and misleading and failed to disclose material adverse facts about Apache’s business operations. Specifically, Apache failed to disclose that it used unrealistic assumptions regarding the amount and composition of available oil and gas in Alpine High, and that it did not have the proper infrastructure in place to safely and/or economically drill and/or transport those resources even if they existed in the amounts purported. These statements artificially inflated the value of the Company’s operations in the Permian Basin.

The lack of Alpine High’s viability emerged through a series of disclosures between April 2019 and March 2020, which resulted in a significant decline in the price of Apache’s stock. By March 13, 2020, Apache’s stock was trading at just $4.46.

Apache Corporation (APA) Shareholders Have Options

Contact us to learn more:

Lauren Levi

(800) 350-6003

Shareholder Information Form

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