Apache Completes Midcontinent Asset Sales
Apache announced the completion of asset sales in the midcontinent and provided supplemental information regarding certain second-quarter 2019 financial and operational results.
In May and July, Apache closed the sale of noncore assets in two separate transactions, comprising $612 million of net proceeds, subject to customary closing adjustments. A portion of the proceeds from these asset sales was used to retire $150 million of bonds that matured in early July.
The asset sales reflect the company’s exit from the Western Anadarko Basin and the previously announced exit from the SCOOP/STACK play. Production from the divested assets averaged 33 thousand barrels of oil equivalent (Mboe) per day in the first quarter of 2019, approximately 90 percent of which consisted of natural gas and natural gas liquids. Apache anticipates that it will report production of approximately 32 Mboe per day from the Midcontinent-Gulf Coast region for second-quarter 2019.
Management will update its 2019 production guidance, including the impact of these asset sales, when it reports second-quarter results on July 31, 2019.