Swings in oil prices have fueled investors to bet the farm, with some calling for $18 crude and others for $50 by year-end, but a $5 difference in the oil market means big money, according to John Christmann, CEO of Apache..
"Every $5 move in the oil price means about $450 million in cash flow to us, so it absolutely makes a difference," he told CNBC's "Power Lunch" on Monday.
Market volatility has encouraged the exploration and production company to cut costs and reduce its rigs drastically, having gone from 93 to four drilling rigs, as of recent. In this vein, Christmann said that Apache continues a conservative approach despite its optimistic views of an oil bounce back. This year, the company foresees it will reduce its production by up to 11 percent from 2015.
Christmann said that Apache is going to be cash flow neutral in 2016, as it planned for a $35 a barrel budget; a big difference from a year before.
"We budgeted the year at $35, so anything with a four handle in front of it or approaching a four handle today is very welcomed," he noted. "We budget at $50 last year."