By Tess Stynes
Apache Corp. said it agreed to sell some oil-and-gas assets in
southern Louisiana and the Anadarko Basin in Texas and Oklahoma for
roughly $1.4 billion in two separate deals.
The divestitures of the noncore assets are part of the
exploration and production company's broader effort to focus on
shale drilling in the U.S.
In a prepared statement before the company's investor update
Thursday, Chairman and Chief Executive G. Steven Farris said
proceeds from the deals are mostly targeted to fund Apache's 2014
leasehold acquisition program. Mr. Farris said the program "has
added significant acreage within our primary focus areas."
The identities of the buyers weren't provided. Both deals are
expected to close during the fourth quarter.
For next year, Apache projects its North American onshore
production will increase 8% to 12%, and forecasts capital spending
for production projects will reach roughly $4 billion.
Earlier this month Apache reported swinging to a third-quarter
loss on write-downs of its oil and gas assets, resulting from lower
commodities prices, as well as other one-time tax-related
items.
The company, under pressure from activist investor Jana Partners
LLC, has been considering a possible sale or spinoff of its
international operations to focus on shale drilling in the U.S. Of
the $2.06 billion in charges during the third quarter, about half
were related to repatriating cash or plans to do so.
Write to Tess Stynes at tess.stynes@wsj.com
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