Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Apache parent APA generates $1bn from stock and asset sales

© Supplied by ApachePump jack at an Apache site in the US.
Pump jack at an Apache site in the US.

E&P company APA Corporation has announced the closing of two US transactions, generating net proceeds of around $1 billion.

APA, a holding company for Apache’s global operations as well as other exploration activity in Suriname and the Domincan Republic,  said March 7 had seen the closure of its divestment of a package of Delware Basin assets for $805 million.

The assets are comprised of non-operated properties across west Texas and southeast New Mexico, including the Reeves, Pecos and Loving counties. Production across the assets totals approximately 7,000 barrels of oil equivalent per day, APA said.

Operators of these assets include Apache, Chevron, ConocoPhillips, Devon, Diamondback and Occidental.

The divestment comes as the company continues to streamline its portfolio and follows the sale of $256 million of noncore assets in the Permian Basin last year.

A second transaction, which cleared on March 11, saw the completion of the sale of 4 million shares in Texan midstream operator Kinetik, generating net proceeds of $224m to APA.

Kinetik was crated via the combination of Altus Midstream and BCP Raptor Holdco, completed in late February.

Within the next two years, Apache’s US unit intends to invest a minimum of $100 million for new well drilling and completion activity at the Alpine High play in the Delaware Basin, where Kinetik has exclusive gas and NGL gathering and processing rights.

In February Apache also announced it had executed a new 10-year dedication agreement with Kinetik for its central Reeves County acreage, called DXL, commencing on November 1, 2022.

“Completion of these transactions reflects the ongoing streamlining of our portfolio. We remain committed to returning free cash flow to shareholders and continuing to strengthen the balance sheet. As such, we plan to direct a portion of these sales proceeds toward debt reduction,” commented APA CEO and president, John J. Christmann IV.

Steve Riney, CFO and executive vice president, added: “With first-quarter 2022 results, we will begin deconsolidating Altus Midstream contributions, thereby deleveraging APA’s balance sheet, simplifying our financial reporting, and enhancing comparability with pure upstream peers.

“As of March 31, 2022, among other items, APA’s balance sheet will no longer reflect the $657 million in Altus long-term debt and $712 million associated with Altus’ preferred equity previously consolidated at year-end 2021.”

In its most recent results update, APA said it plans to invest $1.6 billion in upstream activity this year. This includes approximately $200 million dedicated to exploration and appraisal activities, primarily in Suriname, where it recently announced an oil discovery at the Krabdagu-1 (KBD-1) exploration well, in which it holds a 50% interest with operator TotalEnergies.

This forms part of a wider $5bn capital investment programme from 2022-24.

Recommended for you

More from Energy Voice

Latest Posts