HOUSTON, Nov. 20, 2014 /PRNewswire/ -- Apache
Corporation (NYSE, Nasdaq: APA) will provide an update to investors
at its North American Update conference in New York today.
Highlights from the Update include:
- Apache forecasts 2015 North
American onshore liquids growth of 12 to 16 percent when adjusted
for 2014 asset sales. On a barrel of oil equivalent (BOE)
basis, the company projects 2015 North American onshore production
growth of 8 to 12 percent. This forecast assumes a preliminary
North American onshore exploration and production capital budget of
approximately $4 billion.
- The company presented a five-year compounded annual production
growth outlook for onshore North American liquids of 12 to 16
percent and 8 to 12 percent on a BOE basis.
- During 2014, Apache has added
more than 300,000 acres of leasehold in key growth plays.
- The company has substantially increased its drilling inventory
in the Eagle Ford and Canyon Lime plays of Texas to more than 3,000 and 800 locations,
respectively.
- The company has agreed to sell non-core southern Louisiana and certain Anadarko Basin oil and gas assets for
approximately $1.4 billion in two
separate transactions.
G. Steven Farris, Apache's chairman, chief executive officer and
president, said: "We have made great progress in strategically
positioning our North American onshore portfolio for high growth
and high returns. We continue to focus on growing liquids
production from our deep inventory of North American resource
locations. Proceeds from today's announced asset sales will be used
primarily to fund our 2014 leasehold acquisition program, which has
added significant acreage within our primary focus areas."
Farris continued, "We are excited about our 2015 drilling plan,
which will focus on projects that generate high rates of return and
competitive growth, even in today's lower oil price
environment."
Transaction details
In southern Louisiana,
Apache agreed to sell its working
interest in approximately 90,000 net acres. These mature fields,
which are characterized by high decline rates and short reserve
lives, produced approximately 21,000 BOE per day (62 percent gas
and NGLs) net to Apache during the
third quarter of 2014. Apache will
retain its 275,000 mineral acres in South
Louisiana.
In a separate transaction in the Anadarko Basin, Apache agreed to sell approximately 115,000
net acres in a portion of its Stiles Ranch field in Wheeler County, Texas, and in its
Mocane-Laverne and Verden fields
in western Oklahoma. Net
production from these properties averaged 26,000 BOE per day (83
percent gas and NGLs) during the third quarter of 2014.
Both transactions have an effective date of Oct. 1, 2014, and are expected to close during
the fourth quarter of 2014.
RBC Richardson Barr acted as the
financial advisor on the southern Louisiana transaction and Wells Fargo
Securities, LLC acted as the financial advisor on the Anadarko Basin transaction.
Investor Day webcast
Today's presentation will be webcast live from the company's
website, www.apachecorp.com, beginning at 9
a.m. Eastern time. The presentations and webcast will be
archived on Apache's website.
About Apache
Apache Corporation is an oil and gas exploration and production
company with operations in the United
States, Canada,
Egypt, the United Kingdom and Australia. Apache posts announcements, operational
updates, investor information and copies of all press releases on
its website, www.apachecorp.com, and on its Media and Investor
Center mobile application, which is available for free download
from the Apple App Store and the Google Play Store.
Forward-looking statements
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Forward-looking
statements can be identified by words such as "anticipates,"
"intends," "plans," "seeks," "believes," "estimates," "expects" and
similar references to future periods. These statements include, but
are not limited to, statements about future plans, expectations,
and objectives for Apache's
operations, including statements about our leasehold acquisition
program, drilling plans, production expectations and asset sales
and monetizations. The transactions in Southern Louisiana and the Anadarko Basin are subject to customary
closing conditions and may not be completed for the amount
expected, in the anticipated time frame, or at all. While
forward-looking statements are based on assumptions and analyses
made by us that we believe to be reasonable under the
circumstances, whether actual results and developments will meet
our expectations and predictions depend on a number of risks and
uncertainties which could cause our actual results, performance,
and financial condition to differ materially from our expectations.
See "Risk Factors" in our 2013 Form 10-K filed with the Securities
and Exchange Commission for a discussion of risk factors that
affect our business. Any forward-looking statement made by us in
this news release speaks only as of the date on which it is made.
Factors or events that could cause our actual results to differ may
emerge from time to time, and it is not possible for us to predict
all of them. We undertake no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future development, or otherwise, except as may be required by
law.
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SOURCE Apache Corporation