Apache Considering Sale of Deep-Water Assets in Gulf of Mexico (APA)

Oil and gas producer Apache Corporation (APA) may be planning on selling its deep-water assets in the Gulf of Mexico, said a person familiar with the company.

According to the person familiar with the situation, Apache may begin the sale process as early as next week; only deep-water assets in the US Gulf will be up for sale.

From 2010 to 2012 Apache spent more than $16 billion buying up onshore and offshore assets in order to boosts its holdings. Part of that strategy was spending $2.7 billion to acquire Mariner Energy Inc., a sign that Apache was committed to firming up its position in the Gulf of Mexico. Now that the company is shopping its Gulf of Mexico assets, it seems as though APA is reversing its previous strategy.

In February, Apache announced that it was going to start selling some holdings, at the tune of $2 billion, after its three year shopping spree. It is presumed that Apache is trying to get the cash to pay down some debt.

If the company goes through with the sale, Apache may start to focus its operations on US onshore operations. Last year the company said it planned to boost production of US onshore operations from 21% of total production in 2011 to 41% in 2016.

Apache Corp shares were inactive during pre-market trading on Thursday. The stock is down -30.91% over the past twelve months.

The Bottom Line
Shares of Apache Corp (APA) have a dividend yield of 1.09% based on last night’s closing price of $73.55 and the company’s annualized dividend payout of 80 cents per share.

Apache Corporation (APA) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.

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