According to a recent Reuters report, U.S. energy firm
) is discussing the sale of its assets in Argentina with
). However, neither of the companies have confirmed the news.
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Apache has around 25 oil fields in the South American country.
Last year, the Argentinean assets contributed around 6% to the
company's production and comprised around 3% of the proved
reserves at the end of the year. However, third quarter 2013
production in Argentina remained flat year over year.
The company has presence in Argentina since 2001 and holds
operations in the regions of Neuquén, Rio Negro, Tierra del
Fuego, and Mendoza. The company has around 1.2 million net acres
in the giant Vaca Muerta shale, which contains around 661 billion
barrels of oil and 1,181 trillion cubic feet of natural gas.
According to Reuters, the company has invested over $16 billion
in oil and gas assets in the past three years. However, the
Houston, Texas-based company now plans to sell off these assets
after trying in vain to increase their production level.
In May, the company announced plans to divest assets worth $4
billion to strengthen its balance sheet and lower the debt level.
In accordance with the divestment plan, Apache announced the sale
of its Canada-based oil and gas properties for a total
consideration of $112 million in September and closed the sale of
its Gulf of Mexico (GoM) shelf assets for a cash consideration of
roughly $3.75 billion in October.
Apache is one of the world's leading independent energy companies
engaged in the exploration, development and production of natural
gas, crude oil and natural gas liquids.
Apache currently retains a Zacks Rank #3 (Hold), implying that it
is expected to perform in line with the broader U.S. equity
market over the next one to three months.
Meanwhile, investors interested in the energy sector may consider
Matador Resources Company
Abraxas Petroleum Corp.
). Both these stocks carry a Zacks Rank #1 (Strong Buy).