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Apache divestitures help to rebalance portfolio

LNG Industry,

Apache Corp. has announced its 1Q15 financial and operational results, highlighting the completion of key LNG asset sales.

LNG divestitures

In 2014, the company reviewed its international portfolio in an attempt to best position its asset base for the long-term benefit of shareholders. This resulted in several key divestitures, notably the sale of Apache’s Wheatstone and Kitimat LNG projects to Woodside Petroleum.

In April 2015, Apache closed the sale of these assets for US$3.7 billion of net proceeds. The company also announced the sale of its remaining oil and gas assets in Australia for US$2.1 billion, subject to adjustments.

Portfolio adjustment

"Apache's portfolio now consists of an onshore North American position with a robust inventory of drilling opportunities, complemented by free-cash-flow-generating assets in the North Sea and Egypt. Our international assets benefit from attractive Brent-linked oil prices and also offer a significant inventory of exploration and development opportunities. We are very excited to move forward with a strengthened balance sheet and three key operating areas that offer excellent potential for sustainable long-term growth and capital-allocation flexibility," John J. Christmann, CEO and President, noted.

During the quarter, Apache's capital expenditures before LNG, capitalised interest and Egypt's minority interest was US$1.3 billion, in line with expectations. Spending on LNG facilities during the quarter was US$239 million, all of which was reimbursed with the closing of the LNG asset sales.

Adapted from press release by Katie Woodward

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