Apache Nabs $4-Plus for Permian Natural Gas, Boosted by Prescient Hedging Strategy

After fetching $4.61/Mcf for its Permian Basin natural gas in the first quarter, APA Corp. is stepping up its activity in some prospects and extending its exploration in Texas, executives said Thursday.

The gassy Alpine High development in the Permian Delaware sub-basin of West Texas had been the Houston-based explorer’s No. 1 global play. As gas prices stagnated and oil prices strengthened, more capital was moved to Egypt, the North Sea and offshore Suriname. 

Still, with prices on the rise early this year, CEO John Christmann IV had said in February the Alpine High and other U.S. prospects were likely to see more love in 2021. 

“We made excellent progress during the first quarter with regard to our top priority of free cash flow generation and net debt reduction,”...