Apache to Sell Argentina Operations to YPF for $800 Million

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 [e-mail]

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