Apache Completes Sale Of Gulf of Mexico Shelf Assets To Fieldwood Energy
HOUSTON, Sept. 30, 2013
HOUSTON, Sept. 30, 2013 /PRNewswire/ -- Apache Corporation (NYSE, Nasdaq: APA)
today announced it has completed the previously announced sale of its Gulf of
Mexico Shelf operations and properties to Fieldwood Energy LLC, a portfolio
company of Riverstone Holdings, for $3.75 billion in cash(subject to
customary post-closing adjustments)and assumption of liabilities for future
abandonment costs of the properties with a discounted value of $1.5 billion.
Apache retained 50 percent of its ownership interest in all exploration blocks
and in horizons below production in developed blocks, where high-potential
deep hydrocarbon plays are being tested.
Portfolio rebalancing progress
"Completing this transaction is a significant step toward our goal of
rebalancing Apache's portfolio to focus on assets that can generate strong
returns and drive more predictable production growth, including our deep
inventory of onshore liquids assets in North America," said G. Steven Farris,
chairman and chief executive officer.
On a pro forma basis accounting for the Fieldwood transaction and the
previously announced partnership with Sinopec International Exploration and
Production Corp. in Egypt, Apache's second-quarter 2013 production from North
American onshore assets and from Egypt would have comprised approximately 55
percent and 15 percent, respectively. In 2010, onshore North America
contributed 31 percent of Apache's overall production, Egypt represented 25
percent and the Gulf of Mexico Shelf represented 17 percent.
Apache also announced that it has completed the previously announced sale of
oil and gas producing properties in the Nevis, North Grant Lands and South
Grant Lands areas of western Alberta, Canada, to Ember Resources Inc., a
private Canadian company, for $214 million. Proceeds from the Ember
transaction are subject to customary post-closing adjustments.
Including the Fieldwood and Ember transactions, the partnership with Sinopec
and two additional agreements to sell oil and gas producing properties in
western Canada, Apache has completed or announced more than $7 billion in
asset sales year-to-date.
"In addition to enhancing our production and return profile, these
transactions enable Apache to retain our an optimal capital structure for
growth by reducing debt, enhance shareholder value through a 30-million-share
repurchase authorization, and fund future capital expenditures including
high-impact international projects," Farris said.
Apache Corporation is an oil and gas exploration and production company with
operations in the United States, Canada, Egypt, the United Kingdom, Australia
and Argentina. Apache posts announcements, operational updates, investor
information and copies of all press releases on its website,
This news release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements can be identified by words
such as "anticipates," "intends," "plans," "seeks," "believes," "estimates,"
"expects" and similar references to future periods. These statements include,
but are not limited to, statements about future plans, expectations, and
objectives for Apache's operations, including statements about our drilling
plans and production expectations, asset sales and monetizations and use of
proceeds. The transaction with Sinopec and the Canada asset sales are subject
to customary closing conditions and may not be completed for the amount
expected, in the anticipated time frame, or at all. While forward-looking
statements are based on assumptions and analyses made by us that we believe to
be reasonable under the circumstances, whether actual results and developments
will meet our expectations and predictions depend on a number of risks and
uncertainties which could cause our actual results, performance, and financial
condition to differ materially from our expectations. See "Risk Factors" in
our 2012 Form 10-K filed with the Securities and Exchange Commission for a
discussion of risk factors that affect our business. Any forward-looking
statement made by us in this news release speaks only as of the date on which
it is made. Factors or events that could cause our actual results to differ
may emerge from time to time, and it is not possible for us to predict all of
them. We undertake no obligation to publicly update any forward-looking
statement, whether as a result of new information, future development, or
otherwise, except as may be required by law.
SOURCE Apache Corporation
Contact: Media: Patrick Cassidy, (713) 296-6100, Bill Mintz, (713) 296-7276 or
Bob Dye, (713) 296-6662 or Investors: Brady Parish, Castlen Kennedy,
Christopher Cortez or Alicia Reis, (281) 302-2286
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