Apache Corp. APA +3.38% struck a deal with China Petroleum & Chemical Corp. (0386.HK, 600028.SH, SNP), or Sinopec, under which the U.S. exploration and production company will sell a 33% stake in its Egypt oil and gas business for $3.1 billion.
Shares were up 3.1% at $81.09 after hours. Through the close, the stock is down 6.7% over the past three months.
Apache said will continue to operate its Egypt upstream oil and gas business. The partnership is expected to close in the fourth quarter.
The company noted Thursday it has been rebalancing its portfolio to better deliver the potential of its deep North America onshore resource inventory.
Apache has been divesting itself of assets as it aims to shore up its balance sheet after years of aggressive acquisitions. It plans to use proceeds from these transactions to pay down debt and repurchase shares. In July, Apache inked an agreement to sell its shallow-water operations in the Gulf of Mexico for $3.75 billion.
Net production at Apache’s Egypt operations averaged 100,000 barrels of oil and 354 million cubic feet of natural gas a day in 2012. Apache’s exploration and production operations, which are located in remote, unpopulated areas, remain unaffected by political events in the region.
Earlier this month, Apache reported its second-quarter earnings nearly tripled as it recorded higher production revenue and an income-tax benefit, while expenses in the prior-year period were sharply higher.
Source: Marketwatch
