Kessler Topaz Meltzer & Check, LLP Has Filed a Shareholder Class Action Lawsuit Against Apache Corporation (NASDAQ: APA) for Violations of Federal Securities Laws
RADNOR, Pa .– (BUSINESS WIRE) – Law firm Kessler Topaz Meltzer & Check, LLP announces that the law firm has filed a class action lawsuit against Apache Corporation (NASDAQ: APA) (“Apache”) on behalf of investors who have purchased or acquired Apache common stock, dated September 7, 2016 through March 13, 2020 inclusive (the “Class Period”). This lawsuit, entitled Plymouth County Retirement System, against Apache Corporation et al., Case No. 4: 21-cv-00575, is filed in the United States District Court for the Southern District of Texas (Houston Division).
Important Deadline Reminder: Investors who have purchased or otherwise acquired Apache common stock during the Class Term may apply for appointment as the Class Lead Prosecutor no later than April 26, 2021. For more information or to learn how to take part in this promotion, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or Adrienne Bell, Esq. (484) 270-1435; toll free at (844) 887-9500; by email to firstname.lastname@example.org; or visit https://www.ktmc.com/apache-corporation-securities-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=apache.
Apache is an independent energy company that researches, develops, and produces natural gas, crude oil, and natural gas liquids. Historically, the US has recorded nearly 60% of Apache’s production and 70% of its estimated year-end reserves. One of the company’s supposedly most important “core growth areas” was the Perm region of west Texas and New Mexico.
The class period begins on September 7, 2016 when Apache was under tremendous pressure to show results of its new strategy and reverse its lagging stock price, announcing the discovery of a new resource game called Alpine High. Recalling the discovery of the alpine high and its potential for large amounts of economic drilling opportunities, John J. Christmann IV, Apache’s Chief Executive Officer and President, stated: “[w]We are incredibly excited about the Alpine High game and its large inventory of repeatable, high quality drilling opportunities, and look forward to further delineations[e] What we believe will be a significant number of oil polluted sites. “Following the Alpine High announcement, Apache’s share price rose more than 6% to close at $ 55.13 per share on September 7, 2016.
Throughout the classroom, the defendants maintained that Alpine High had valuable oil and gas reserves and promoted Alpine High as the core of its development business. In a conference call with investors on May 3, 2018, Christmann stated, for example, that Alpine High is “doing very well and with enormous interest” and monetization opportunities exist if “the value of this infrastructure will increase significantly over the course of the year, the next 5, 6, 7 , 8 years. ”
The truth about Alpine High and its lack of profitability became clear in a string of data between April 2019 and March 2020 that resulted in Apache’s share price falling over 83% from its class period high. Specifically, on April 23, 2019, Apache released a pre-market press release announcing that natural gas production in its gas-heavy Alpine High game will be postponed from the end of March to positively impact Apache’s cash flow and blame extremely low gas Pricing on the Permian gas market. In an article also published before the market opened, Bloomberg described Alpine High’s production postponement as “another blow to the Apache project.” Following the news, Apache’s share price fell $ 4.03 per share, or approximately 11%, from $ 37.09 per share on April 22, 2019 to $ 33.06 per share on April 26, 2019 over four trading days.
On October 25, 2019, news revealed that Steven Keenan, Apache’s senior vice president of Worldwide Exploration, had resigned from Apache. In response, a Credit Suisse analyst noted that since the announcement of the discovery of the Alpine high at the start of the class period[Apache’s] Equities have underperformed worldwide [exploration and production companies] by> 30%, probably a reason for Mr. Keenan’s resignation. “Following the news, Apache’s share price fell $ 1.16 per share, or approximately 5%, from $ 23.23 per share on October 24, 2019 to $ 22.07 per share on October 25, 2019.”
A few months later, on February 26, 2020, Apache announced that the Alpine High project would be stopped immediately and a write-off of $ 3 billion would be taken. When it came to Apache’s profit statement for the fourth quarter the next day, Christmann admitted: “[i]In the end, a number of factors “did not occur” at Alpine High, including sharply lower prices for gas and gas by-products, the lack of infrastructure for production and productivity improvements.
About two weeks later, on March 12, 2020, Apache announced that “Apache’s board of directors has approved a quarterly dividend per share from $ 0.25 to $ 0.025 to reduce its financial condition.” Apache further revealed: “[o]In the coming weeks, the company will reduce the number of Perm rigs to zero, which will limit exposure to short cycle oil projects ”in Alpine High Resource Play. According to the news, the price of Apache’s common stock fell $ 0.49 per share, or approximately 6%, from a closing price of $ 8.25 per share on March 11, 2020 to $ 7.76 per share on March 12, 2020.
Finally, on March 16, 2020, a pre-market article by Seeking Alpha stated that Apache was particularly challenged among its competitors and “has the highest debt-to-equity ratio of independent large-cap companies [exploration and production companies], “And found that”[t]The company does not have a strong balance sheet ”and its“ financial health is not good ”. The article highlighted Apache’s “poor balance sheet, characterized by high debt” of over $ 8 billion in 2019, “which translates to a high leverage ratio of nearly 250% – the highest of any large-cap independent oil producer . Regarding Alpine High, the article noted that low gas prices “forced Apache to divert capital from the wet-gas-rich Alpine High game that drove the company’s production growth.” The article also states that “Apache also reduced the value of Alpine High by $ 1.4 billion.” According to the news, Apache’s stock price fell $ 3.61 per share, or approximately 45%, from $ 8.07 per share on March 13, 2020 to $ 4.46 per share on March 17, 2020 over two trading days.
The complaint alleges that throughout the class period, defendants failed to advise investors that: (1) Apache made deliberately unrealistic assumptions about the amount and composition of the oil and gas available at Alpine High; (2) Apache did not have the proper infrastructure to safely and / or economically drill and / or transport these resources, even if they were available in the stated quantities. (3) these misleading statements and omissions have artificially increased the value of Apache’s operations in the Permian Basin; and (4) as a result, Apache’s public statements have been materially false and misleading at all relevant times.
Apache investors can, no later than April 26, 2021, attempt to be appointed lead class agent by Kessler Topaz Meltzer & Check, LLP, or other attorney, or elect to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the dispute. To be named lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members and that the class member is adequately representing the class. Your ability to get involved in a recovery will not be affected by whether or not you will be the lead plaintiff.
Kessler Topaz Meltzer & Check, LLP, pursues class actions in state and federal courts across the country involving securities fraud, fiduciary violations, and other federal and state law violations. Kessler Topaz Meltzer & Check, LLP, is a driving force behind corporate governance reform and has reclaimed billions of dollars on behalf of institutional and individual investors from the US and around the world. The company represents investors, consumers and whistleblowers (individuals who report fraudulent practices against the government and are involved in recovering government dollars). For more information on Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com.