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Apache's Egypt asset sale a "game-changer," Deutsche Bank says

  • Apache's (APA) sale of a 33% stake in its Egypt business to Sinopec (SNP) for $3.1B is a "game-changer," Deutsche Bank says, as it increases the momentum of change at APA and obtains value for an asset the market was discounting.
  • The deal rebalances the APA portfolio, with Egypt now comprising 15% of production vs. 20% in FY 2012.
  • The firm "embraces" the restructuring at APA and believes "there is more to come."
  • The lifting and de-risking of $3.1B of additional value from Egypt could see shares up $7-$8, DB says; APA +7.6% premarket.
Comments (6)
  • deanspellman
    , contributor
    Comment (1) | Send Message
     
    awesome move,mgmt.has its eye on the prize!
    30 Aug 2013, 09:45 AM Reply Like
  • tiger8896
    , contributor
    Comments (564) | Send Message
     
    It's about time but why just a 33% stake. I would have sold a controlling interest of at least 51% and let them run the operations.
    30 Aug 2013, 10:00 AM Reply Like
  • PalmDesertRat
    , contributor
    Comments (2379) | Send Message
     
    maybe this will tempt others who will pay more.

     

    took some APA profits this morning at 84.91. still have a lot more.
    30 Aug 2013, 10:26 AM Reply Like
  • Animalspirit12
    , contributor
    Comments (18) | Send Message
     
    I think deal is contingent on their continued involvement; technical as well as APA as experience in that region. I assume that's why APA a better price than expected.
    30 Aug 2013, 01:28 PM Reply Like
  • User 353732
    , contributor
    Comments (4753) | Send Message
     
    For companies such as Apache, Anadarko ,MRO, OXY and COP the highest return opportunities are now in onshore North American low permeability basins.
    30 Aug 2013, 12:27 PM Reply Like
  • Jason Burack
    , contributor
    Comments (1706) | Send Message
     
    Less geopolitical risk for Apache. Markets like certainty. It makes sense the market likes this move. The question is what is Apache going to do with this money now?
    30 Aug 2013, 01:43 PM Reply Like
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