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Apache (APA) Closes Sale of Australian Upstream Operations - Analyst Blog

Zacks Equity Research
Updated

U.S. energy firm Apache Corp. APA announced that it has completed the sale of its earlier announced Australian upstream operations. The company has sold its affiliate – Apache Energy Limited – to a group of private equity funds that are managed by Macquarie Capital Group Limited and Brookfield Asset Management Inc.

Apache received net proceeds of $1.9 billion for the deal. The effective date of the transaction is Oct 1, 2014.

Previously, Apache had stated that production from its above-mentioned Australian affiliate and its subsidiaries averaged about 49,000 barrels of oil equivalent per day in March.

With this sale, Apache has exited all its exploration and production business in Australia. Earlier this month, this company announced the sale of its Wheatstone LNG project for $2.8 billion to Woodside Petroleum Limited. The company now retains just a 49% stake in fertilizer producer Yara Pilbara Holdings Pty Limited.

Apache added that the transaction is in accordance with its portfolio repositioning strategy. The company has directed its focus toward onshore North America over the past few years through asset sales and purchases worth $17 billion each. Also, with the Australian asset sale, about 70% of the company’s total production will now come from North America. Moreover, Apache’s North Sea and Egyptian operations complement its North American portfolio.

Houston, TX-based Apache is one of the leading independent energy companies in the world. The company is engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids.

Currently, Apache carries a Zacks Rank #3 (Hold).

Better-ranked players from the oil and gas exploration and production industry include LRR Energy, L.P. LRE, WPX Energy, Inc. WPX and QEP Resources, Inc. QEP. While LRR Energy and WPX Energy sport a Zacks Rank #1 (Strong Buy), QEP Resources holds a Zacks Rank #2 (Buy).

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APACHE CORP (APA): Free Stock Analysis Report
 
QEP RESOURCES (QEP): Free Stock Analysis Report
 
WPX ENERGY INC (WPX): Free Stock Analysis Report
 
LRR ENERGY LP (LRE): Free Stock Analysis Report
 
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