Apache to Dispose $3.75B GoM Assets - Analyst Blog
24 Luglio 2013 - 12:10AM
Zacks
U.S. energy firm, Apache Corp. (APA), has
decided to divest its Gulf of Mexico (GoM) Shelf assets for a cash
consideration of roughly $3.75 billion to Fieldwood Energy LLC, a
subsidiary of a private equity firm Riverstone Holdings. The
properties span over 1.9 million acres, with proved reserves of
133.0 million barrels of liquids and 636.0 billion cubic feet of
natural gas.
Additionally, Fieldwood will obtain all the future obligations
related to the asset retirement, which is estimated to be roughly
$1.5 billion. However, Apache will retain 50% stakes in all the
unexplored blocks. The transaction is expected to close by Sep 30,
2013, subject to customary and regulatory approvals. In the
transitional period, Apache will continue operating the assets.
Apache believes that this proposed sale will help it to rebalance
its portfolio and also generate shareholder’s value. Moreover, the
transaction will enable Apache to reach closer to its goal of
selling properties of roughly $4.0 billion by the end of 2013. The
proceeds from this divestment will be used to lower Apache’s debt
burden and to repurchase shares.
Houston, Texas-based Apache is one of the world's leading
independent energy companies engaged in the exploration,
development and production of natural gas, crude oil and natural
gas liquids. We like Apache’s large geographically-diversified
reserve base, as well as its balanced exposure to natural gas and
crude oil, and multi-year trends in reserve replacement and
production growth.
However, the company’s long-term production and reserve growth
primarily depends on its acquire-and-exploit model. Apache may find
it difficult to complete accretive transactions in the future,
which could negatively impact its growth rate.
Apache currently carries a Zacks Rank #3 (Hold), implying that it
is expected to perform in line with the broader U.S. equity market
over the next one to three months.
Meanwhile, one can look at exploration and production firms like
EPL Oil & Gas Inc. (EPL), Matador
Resources Co. (MTDR) and Memorial Production
Partners LP (MEMP). All the firms sport a Zacks Rank #1
(Strong Buy).
APACHE CORP (APA): Free Stock Analysis Report
EPL OIL&GAS INC (EPL): Free Stock Analysis Report
MEMORIAL PRODUC (MEMP): Free Stock Analysis Report
MATADOR RESOURC (MTDR): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Grafico Azioni Energy Partners (NYSE:EPL)
Storico
Da Set 2024 a Ott 2024
Grafico Azioni Energy Partners (NYSE:EPL)
Storico
Da Ott 2023 a Ott 2024
Notizie in Tempo Reale relative a Epl Oil & Gas (Borsa di New York (NYSE)): 0 articoli recenti
Più Energy Partners Articoli Notizie