Apache to Sell Western Canada Assets for $374 Million

   By Erin McCarthy 
 

Apache Corp. (APA) said Monday it will sell some oil- and gas-producing assets in Canada for $374 million.

The move is part of the company's ongoing portfolio rebalancing, which it began last year in a bid to focus more on growing crude oil and liquids production. Since last year, the company has also divested operations on the Gulf of Mexico Shelf, in Argentina and Egypt, as it also has looked to shore up its balance sheet after years of acquisitions.

The company said it is selling dry gas-producing properties in the Ojay, Noel and Wapiti areas in Alberta and British Columbia. Those fields averaged daily production of 101 million cubic feet of natural gas and 1,500 barrels of liquid hydrocarbons in 2013.

"The sale of these natural gas assets -- and other Canadian gas-producing properties sold last year -- will permit Apache's Canada Region to concentrate on liquids-rich opportunities that can provide more attractive rates of return and more predictable production growth," Apache Chairman and Chief Executive G. Steven Farris said in a statement.

The company said the proceeds from the sale will be used to fund its 30-million-share repurchase program. The transaction is expected to close on or about April 30.

The stock is down 3.4% so far this year.

Write to Erin McCarthy at [e-mail]

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