WSJ: Apache To Lay Off About 250 Workers This Week

(RTTNews) - Oil and gas producer Apache Corp. (APA) is laying off about 250 workers this week, the Wall Street Journal reported Wednesday.

The workforce reduction reportedly amounts to about 5 percent of the company's staff and is one of the first by an American oil producer amid the fall in crude oil prices.

World oil prices have been falling since June from a 2014 high above $100 a barrel. But the recent fall in crude oil prices to less than $50 a barrel has made the operations of oil and gas companies unprofitable.

Apache had reported profits amid the U.S. energy boom. However, in November 2014, the company reported a loss for the third quarter, reflecting one-time charges and lower revenues. The company also reported a 14 percent decline in production for the quarter.

While reporting its financial results for the second quarter in July 2014, Apache said it plans to completely exit the Wheatstone LNG project in Australia and the Kitimat LNG project in Canada. Activist investor Jana Partners LLC has urged Apache to sell its international holdings and focus on drilling onshore in the U.S.

In mid-December, Apache said it has agreed to sell its stakes in the Wheatstone LNG project in Australia and Kitimat LNG project in Canada, along with accompanying upstream oil and gas reserves, to Australian oil and gas producer Woodside Petroleum Ltd. (WOPEF.PK, WOPEY.PK, WPL.AX) for $2.75 billion.

APA closed Wednesday's trading at $59.53, up $1.07 or 1.83 percent on a volume of 4.50 million shares. In after-hours, the stock further gained $0.22 or 0.37 percent to $59.75.