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Friday, Aug 30
Apache surprises analysts with impressive price in Egypt asset sale
- Apache's (APA +7.6%) ability to close the $3.1B sale to Sinopec (SNP -1.5%) for its Egypt assets at a surprisingly high price is impressive in light of the political turmoil in the region, Simmons analysts say.
- The deal implied a total Egypt asset value of $9.3B, higher than estimates of ~$7.7B, and it also came early, with expectations centering around a move in 2014, the firm says.
- Egypt likely accounts for 20% of APA's current production, 25% of its cash flow, "and a disproportionately larger share of investor concerns."