Apache Buying Cordillera Energy In $2.85B Deal

Apache Buying Cordillera Energy In $2.85B Deal
Market News
Like Us On Facebook
Like Us On Facebook

Oil and gas producer Apache Corp. is buying privately-held Cordillera Energy Partners III LLC in a cash-and-stock deal valued at $2.85 billion.

The deal gives Apache access to land with potential oil and gas fields in Oklahoma and Texas. Apache also gets oil wells that are already producing in the region.

The land will give Apache opportunities to drill new wells in underground shale rock that’s estimated to contain 71.5 million barrels of oil equivalent per day. Existing wells already produce 18,000 barrels of oil equivalent per day.

The move underscores Apache’s shift in focus to land-based drilling in North America.

Its horizontal wells drilled in the last three years now make up about half of Apache’s Central Region production. Cordillera’s owners, including EnCap Investments, other institutional investors and Cordillera management, will receive about $600 million in Apache stock. The rest of the acquisition will be paid in cash.

The deal is expected to close in the second quarter. Apache said it is expected to add to its earnings and cash flow starting this year.

Apache, which is based in Houston, has operations in the U.S., Canada, Egypt, the North Sea, Australia and Argentina.

Its shares finished at $96.80 on Friday. They are up 32 percent from their 52-week low of $73.04 in early October. They traded as high as $134.13 in late April.

Associated Press

Share Tweet
React
Like Us On Facebook
Like Us On Facebook

Preston Waters

Preston Waters is a thinker. He's not your traditional philosophical persona, however, as he leaves no topic untouched. Covering all the bases, from business to women, Preston Waters is the ultimate man's man for Gen-Y.

More In Market News

News Preston Waters

Stocks Off to Stellar Start in May

Stocks were kicking off May in high style Tuesday, posting sharp gains after a much better-than-expected report on U.S. manufacturing activity. The Dow Jones Industrial Average was rising 103 points, or 0.8%, at 13,317, after hitting a four-year high at 13,338. The S&P 500 was up 14 points, or 1%, at 1413, and the Nasdaq was adding 23 points, or 0.7%, at […]

News Preston Waters

Bank Of America, JPMorgan: Dow Midday Movers

U.S. stocks were rising in midday action Tuesday following a better-than-expected read on U.S. manufacturing activity.The Dow Jones Industrial Average was up more than 116 points, or 0.9%, at 13,330. The biggest percentage gainers within the Dow were Bank of America (BAC), JPMorgan Chase (JPM) and Intel (INTC). Shares of Bank of America rose 2.59% to $8.32. The bank said Tuesday it plans to lay […]

News Preston Waters

Monster Stocks Soar Amid Rumors Coca-Cola Is Set To Buy Energy Drink

Monster Beverage Corp’s shares soared on Monday following a report that Coca-Cola Co. was considering buying the energy drink maker. The Wall Street Journal cited unnamed people in reporting that the world’s biggest soft drink maker was in talks to buy Monster. If a deal transpired, Monster would be Coca-Cola’s largest brand acquisition ever. Monster declined […]

News Preston Waters

Stocks Surge After Strong Manufacturing Report

Stocks were surging in morning action Tuesday after a much better-than-expected report on the pace of national manufacturing activity in April.The Dow Jones Industrial Average was rising 80 points, or 0.6%, at 13,294. The S&P 500 was up 12 points, or 0.8%, at 1410, and the Nasdaq was adding 29 points, or 1%, at 3075. Stocks finished modestly lower Monday, marking […]

News Preston Waters

Bank Of America Keeps Shrinking

Bank of America (BAC)’s plan to lay off some of its highest-paid executives looks like the right response to the current banking environment. The Wall Street Journal reported Tuesday the bank will cut 2,000 positions in its investment banking, commercial banking and non-U.S. wealth-management units targeting “the high-earning employees whose efforts helped Merrill Lynch account for the bulk of […]

News Preston Waters

Stock Market Story: May 1

The first trading day of May got off to a mixed start early Tuesday with all three major U.S. equity indices honing to close to the flat line ahead of a key report on the pace of U.S. manufacturing activity in April. The Dow Jones Industrial Average was down 9.5 points, or 0.07%, at 13,204.The S&P 500 was up less than a […]

Also On Elite

Women

Lena Dunham Tells Women They Don’t Need A Reason To Be On Birth Control

The Supreme Court’s Hobby Lobby ruling last month gave privately-owned, for-profit companies the right to opt out of the contraception mandate, legalizing its intent to ban four forms of birth control to female employees and their beneficiaries who had paid into the employer-sponsored health insurance plan. Although Hobby Lobby claims that those forms of contraception […]

Life

5 Things I’ve Learned About My Life And Career From My First Post-Grad Job

It’s pretty difficult to anticipate work life before actually graduating. After four years of printed syllabi and having all your work cut out and assigned to you, the notion of being thrust onto a blank canvas, without numbers that correspond to colors, can be extremely overwhelming. Even for those who excelled in undergrad, the habits […]