Apache Snatches Up Exxon’s North Sea Assets
Apache has bee working hard to to expand their assets and increase their production. Their most recent step has been their imminent purchase of Exxon’s North Sea assets. How will this better Apache’s numbers? Christopher Helman digs deeper into what this acquisition means for Apache.
…Analysts at Tudor, Pickering & Holt weren’t terribly enthusiastic about the deal, noting this morning that the acquisition amounted to a price of $61,000 per flowing barrel versus the $57,000 per flowing barrel that Apache’s current market valuation implies. The deal does however look accretive to cashflow, they wrote, priced at 2.7 times cashflow versus Apache’s overall 3.6 times…
..The acquisitions are paying off in higher production rates. In August Apache reported that its volumes had reached 749,000 bpd, up dramatically from 647,000 bpd the previous year.
Among the biggest U.S. oil and gas companies, Apache is more or less tied with Anadarko Petroleum with a market capitalization of $36 billion…
Apache is clearly making moves toward better assets and a growing company. The fact that the management in taking this strategy on is bold and aggressive. If they maintain this strategy, they could do pretty darn well for themselves.
Quotes taken from report by Christopher Helman, Read the entire article here.
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