Apache Corporation Provides North American Onshore Update, Announces Sale Of Non-Core Southern Louisiana And Certain Anadarko Basin Oil And Gas Assets
HOUSTON, Nov. 20, 2014 /PRNewswire/ -- Apache Corporation (NYSE, Nasdaq: APA) will provide an update to investors at its North American Update conference in New York today.
Highlights from the Update include:
- Apache forecasts 2015 North American onshore liquids growth of 12 to 16 percent when adjusted for 2014 asset sales. On a barrel of oil equivalent (BOE) basis, the company projects 2015 North American onshore production growth of 8 to 12 percent. This forecast assumes a preliminary North American onshore exploration and production capital budget of approximately $4 billion.
- The company presented a five-year compounded annual production growth outlook for onshore North American liquids of 12 to 16 percent and 8 to 12 percent on a BOE basis.
- During 2014, Apache has added more than 300,000 acres of leasehold in key growth plays.
- The company has substantially increased its drilling inventory in the Eagle Ford and Canyon Lime plays of Texas to more than 3,000 and 800 locations, respectively.
- The company has agreed to sell non-core southern Louisiana and certain Anadarko Basin oil and gas assets for approximately $1.4 billion in two separate transactions.
G. Steven Farris, Apache's chairman, chief executive officer and president, said: "We have made great progress in strategically positioning our North American onshore portfolio for high growth and high returns. We continue to focus on growing liquids production from our deep inventory of North American resource locations. Proceeds from today's announced asset sales will be used primarily to fund our 2014 leasehold acquisition program, which has added significant acreage within our primary focus areas."
Farris continued, "We are excited about our 2015 drilling plan, which will focus on projects that generate high rates of return and competitive growth, even in today's lower oil price environment."
Transaction details
In southern Louisiana, Apache agreed to sell its working interest in approximately 90,000 net acres. These mature fields, which are characterized by high decline rates and short reserve lives, produced approximately 21,000 BOE per day (62 percent gas and NGLs) net to Apache during the third quarter of 2014. Apache will retain its 275,000 mineral acres in South Louisiana.
In a separate transaction in the Anadarko Basin, Apache agreed to sell approximately 115,000 net acres in a portion of its Stiles Ranch field in Wheeler County, Texas, and in its Mocane-Laverne and Verden fields in western Oklahoma. Net production from these properties averaged 26,000 BOE per day (83 percent gas and NGLs) during the third quarter of 2014.
Both transactions have an effective date of Oct. 1, 2014, and are expected to close during the fourth quarter of 2014.
RBC Richardson Barr acted as the financial advisor on the southern Louisiana transaction and Wells Fargo Securities, LLC acted as the financial advisor on the Anadarko Basin transaction.
Investor Day webcast
Today's presentation will be webcast live from the company's website, www.apachecorp.com, beginning at 9 a.m. Eastern time. The presentations and webcast will be archived on Apache's website.
About Apache
Apache Corporation is an oil and gas exploration and production company with operations in the United States, Canada, Egypt, the United Kingdom and Australia. Apache posts announcements, operational updates, investor information and copies of all press releases on its website, www.apachecorp.com, and on its Media and Investor Center mobile application, which is available for free download from the Apple App Store and the Google Play Store.
Forward-looking statements
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 leasehold acquisition program, drilling plans, production expectations and asset sales and monetizations. The transactions in Southern Louisiana and the Anadarko Basin 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 2013 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.
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SOURCE Apache Corporation
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