Apache To Complete Exit From Canada

(RTTNews) - Apache Corp. (APA) said that it will complete an exit from Canada upon the closing of three recent transactions.

Apache has agreed to sell its Apache Canada subsidiary to Paramount Resources Ltd. (POU.TO). This includes properties located principally in the provinces of Alberta and British Columbia. In a separate transaction signed in June, Apache agreed to sell its Provost assets in Alberta to an undisclosed privately owned company. Also in June, Apache sold its assets at Midale and House Mountain, located in Saskatchewan and Alberta, to Calgary-based Cardinal Energy Ltd. (CJ.TO).

Upon completion of its exit from Canada, Apache will realize a significant reduction in asset retirement obligations and annual overhead costs. Total company revenues per BOE, cash margins per BOE, and earnings per share will also improve with the completion of these transactions. Apache budgeted $125 million of capital expenditures to Canada for 2017 and 2018.

Unspent allocations will be redirected to other areas of the portfolio. The company plans to update its 2017 and 2018 guidance following the closings of the three transactions. The Cardinal transaction closed in late June, and the remaining two are expected to close by the end of August 2017.