Sale of Northern assets goes to reduce debt, increase liquidity
Apache Corporation has closed on three separate transactions that effectively mark the company's exit from Canada.
Sold is its Apache Canada Ltd. subsidiary along with other assets in deals totalling about $713 million.
Paramount Resources is buying Apache Canada, including properties in the provinces of British Columbia and Alberta, to an undisclosed buyer.
Apache is also selling House Mountain and Midale assets in Alberta and Saskatchewan to Calgary's Cardinal Energy Ltd.
Apache said Thursday the money from the sales will go to pay down debt, improve liquidity and "fund a portion of Apache's 2017-2018 capital program" -- and added that its exit from Canada "will realize a significant reduction in asset retirement obligations and annual overhead costs."
CEO and President John J. Christmann IV said, "with our decision to exit Canada, Apache's resulting global portfolio is more streamlined and focused."
By Mike Shiloh
Copyright July 07, 2017, Mike Shiloh, Texas Energy Report LLC, www.texasenergyreport.com, All rights are reserved