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Image courtesy of Apache Petroleum.

Apache Corporation cuts its 2016 capital expenditure budget by 60 percent on Thursday after reporting a $23 billion full year net loss.

The company reported a full year net loss of $23.1 billion, or $61.20 per diluted common share.

On an adjusted basis, Apache’s 2015 loss totaled $130 million, or $0.34 per share.

Net cash provided by continuing operating activities was $2.8 billion and adjusted EBITDA was $3.9 billion in 2015.

Total capital expenditures were $4.7 billion for the full year, or $3.6 billion when excluding leasehold acquisitions, capitalized interest, its Egypt noncontrolling interest and spending on divested LNG and associated assets.

The Houston-based company’s full year capital expenditure guidance range was $3.6 billion to $3.8 billion.

Apache reported a fourth quarter 2015 net loss of $7.2 billion, or $19.07 per diluted common share, including non-cash after-tax ceiling test write downs and impairments of $5.9 billion tied to low commodity price levels.

When adjusted for impairments and other items that impact the comparability of results, Apache’s fourth quarter net loss totaled $24 million, or $0.06 per share.

Net cash provided by continuing operating activities in the fourth quarter was $262 million and adjusted EBITDA was $781 million.

Apache said cash flow from operations was reduced in the fourth quarter by a one-time income tax payment of $484 million, associated with the repatriation of foreign divestment proceeds.

During the fourth quarter, Apache operated an average of 39 rigs and drilled and completed 113 gross-operated wells worldwide.

Apache CEO and president John J. Christmann IV said the company will trim its 2016 capital program to $1.4 billion to $1.8 billion, down more than 60 percent year-over-over and down more than 80 percent from 2014 levels.

“With current 2016 strip prices 30 to 35 percent below year-ago levels, we believe a conservative plan and a flexible capital spending program are paramount to protecting the financial position we have worked hard to establish over the last 18 months,” Christmann said.

Apache’s worldwide estimated proved reserves totaled 1.6 billion barrels of oil equivalent at the end of 2015, down from 2.4 billion boe at the end of 2014.

The company said the reserves decline was  primarily driven by significant divestitures in Australia and Canada, falling commodities prices and 60 percent year-over-year reduction in capital spending.

Apache expects total pro forma production volumes, excluding its Egypt noncontrolling interest and tax barrels, to range from 433,000 to 453,000 per day in 2016, down 7 to 11 percent from pro forma 2015 levels.

Christmann added that Apache plans to be cash flow neutral in 2016 after dividends assuming flat West Texas Intermediate prices, Brent oil prices of $35 per barrel and “minimal non-core, non-producing asset sales.”