Apache (APA) has been buying opportunities for expansion, while maintaining a generous portion of plays in natural gas, natural gas liquids and crude oil. The company’s $15 billion spending spree so far has paid off with major productive assets solely and through joint ventures in the Gulf of Mexico, Argentina, Australia, Egypt, and the U.S.
Although competitive with companies like Anadarko Petroleum (APC), BP, Exxon Mobil (XOM), and Total SA (TOT), Apache is becoming more diversified than most other energy companies. While other companies might analyze the merits of such plays, this nearly 60-year old company is cutting deals and making purchases quickly. There is no paralysis by analysts here, which is why I believe this company is a smart buy to be added to the energy sector of any investment portfolio.
Apache is pursuing deals where oil and gas can be found. Currently the company is very active in exploring and producing oil and gas resources in Australia. The company has approximately 6.7 million acres under lease with an average daily production of 69,000 barrels of oil equivalent and over the next three years, these projects are expected to add tens of thousands of barrels of production. Also, the company recently announced that from the Chevron-operated Wheatstone project in Western Australia, an Apache Australian subsidiary and its partners have agreed to sell liquefied natural gas (LNG) to Tohoku Electric Power Company Incorporated. The Wheatstone partners and Tohoku signed a Heads of Agreement to supply for up to 20 years, up to 1 million metric tons per annum (MTPA) of LNG.To continue reading, click here.