Bosses at Apache have announce plans to achieve greater “administrative and financial flexibility” by restructuring the Houston-headquartered oil company.
Apache, which operates the Forties and Beryl fields in the UK North Sea, will create a “holding company structure” during the first half of 2021.
Upon its formation, APA Corporation, the new holding company, will replace Apache Corporation as the public company trading on the Nasdaq stock exchange.
Existing shares of Apache will be automatically converted, on a one-for-one basis, into shares of common stock of APA Corporation, which will retain the ticker symbol APA.
The board and the executive officers of Apache will continue in their same roles at the new company.
APA Corporation will acquire the Suriname and Dominican Republic subsidiaries from Apache Corporation.
Apache Corporation will become a direct subsidiary of APA Corporation and will continue to hold existing assets in the US, subsidiaries in Egypt and the UK, and its current economic interests in Altus Midstream Company and Altus Midstream LP.
John Christmann, Apache CEO and president, said: “These steps modernize our operating and legal structure, making it more consistent with other companies that have subsidiaries operating around the globe.
“A holding company offers advantages in risk management, provides financial and administrative flexibility, and more closely aligns our legal structure with our growing international presence.”
In 2019-20, the company underwent an organisation “redesign” intended to reduce costs.