By Tess Stynes
Apache Corp. has agreed to sell all of its operations in
Argentina to YPF SA for $800 million in cash.
The deal, expected to close within 30 days, includes the
assumption of $52 million of debt.
Apache Chairman and Chief Executive G. Steven Farris said the
move is consistent with the exploration-and-production company's
strategy to focus on growth areas such as its "liquids-rich
drilling opportunities onshore North America and international
assets generating large free cash flows."
The oil-and-gas company said the deal is also part of a broader
asset-sale strategy that also aims to improve the company's balance
sheet after years of acquisitions. Apache said the latest
transaction complements $7 billion of cash proceeds from asset
sales in the last two quarters.
At the end of last year, Apache's estimated reserves in
Argentina totaled 540 billion cubic feet of natural gas equivalent.
The company's average daily production in 2013 was 256 million
cubic feet of gas equivalent a day.
Apache is expected to release its fourth-quarter financial
results Thursday.
Write to Tess Stynes at tess.stynes@wsj.com
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