Apache Corporation

Investigation
02/23/2021

Initial Lawsuit
02/23/2021

Lawsuit Progression
10/06/2021

Investigation

Continous Holding
September 7, 2016 to March 13, 2020
Proposed Claim
Securities Violation

Investigating Apache’s statements regarding the infrastructure in place and valuation of its Permian Basin called Alpine High.

Main Event

Deferring production

04/23/2019

Company Statement

Apache announces the deferral of Alpine High natural gas production “in response to extremely low prices.”

“As far back as two years ago, Apache foresaw the potential for gas takeaway constraints in the Permian Basin and initiated two significant mitigating actions. First, we contracted more than 1 billion cubic feet (Bcf) per day of long-term, firm takeaway capacity from the Permian Basin, on the Kinder Morgan-operated Gulf Coast Express and Permian Highway pipeline projects. Gulf Coast Express is expected to be in service later this year, and Permian Highway is expected to be in service later in 2020. At such time, Apache will be selling the vast majority of its Permian gas at a variety of Gulf Coast price points. Second, to address the pricing risk prior to these pipes coming into service, we entered into a series of basis swaps on a significant portion of our expected Permian Basin gas production through the middle of 2019. These swaps significantly mitigate the impact of current Waha pricing,” said John J. Christmann IV, CEO and president of Apache Corporation.”

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close	Previous close	Price variation	Percentage variation
$34.97	$35.608500382711	$-0.64	-1.79%

See more on Factual Timeline

Initial Lawsuit

Plaintiff brings this securities class action on behalf of all persons or entities that purchased or otherwise acquired Apache common stock from September 7, 2016, through March 13, 2020, inclusive.

Filing Date
02/23/2021
Class Period
09/07/2016 to 03/13/2020
Transgression
Securities Violation
Filing Firms
Kessler Topaz Meltzer & Check, LLP
Ajamie LLP
Saxena White P.A.
Case Title
Plymouth County Retirement System v. Apache Corporation
Docket Number
4:21-cv-00575
Court
Texas Southern District Court
Free File
Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:

(i) Apache intentionally used unrealistic assumptions regarding the amount and composition of available oil and gas in Alpine High;
(ii) Apache 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;
(iii) these misleading statements and omissions artificially inflated the value of the Company’s operations in the Permian Basin; and
(iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.

Defendants

Company
Apache Corporation
Chief Executive Officer
John J. Christmann IV
Executive Vice President
Timothy J. Sullivan
Chief Financial Officer
Stephen J. Riney
Vice President
Steven Keenan

Lawsuit progression

Docket Number
4:21-cv-00575
Court
Texas Southern District Court

Lead Counsel

10/06/2021

The court issued an order appointing the lead plaintiff and lead counsel.

Lead Counsel
Kessler Topaz Meltzer & Check, LLP
Saxena White P.A.
Lead Plaintiff
Group of Funds
Free File
Order for lead

Amended Complaint

12/17/2021

Lead Plaintiffs Plymouth County Retirement Association and the Trustees of the Teamsters Union No. 142 Pension Fund bring this action under the federal securities laws, individually and on behalf of all persons or entities that purchased or otherwise acquired Apache Corporation common stock during the period from September 7, 2016 through March 13, 2020, inclusive, and were damaged thereby.