Boston, MA 06/05/2014 (wallstreetpr) – Apache Corporation (NYSE:APA) is a mid-size company which is now focusing on fast growth in North America while divesting under performing assets overseas. The company has shifted its focus to Eagle Ford Shale formation and the Permian Basin and plans to double the number of rigs in this area. Also, in the pipeline are new projects in Australia and the North Sea. If one looks at ratings given by 41 analysts after studying the various steps the company is taking, 40 have given hold or buy ratings.
Leadership Changes
As part of company’s reorganization and development drive, leadership changes were announced. Tom Yelich has been promoted to the staff vice president (Business Development) and Tim Custer has been promoted to staff vice president (Land Departments). Apache Corporation (NYSE:APA) hopes that the experience these men carry would bring the desirable results for the company.
Adds 10 million Buyback Plan
The company announced that it has repurchased its 10 million common shares in addition to 30 million that was acquired in 2013. The total purchase amounted to $2.1 billion. This would balance the Apache’s portfolio and drive growth from oil and liquid rich onshore North America assets.
Taking Up a New Path
The Apache Corporation (NYSE:APA) announced divestment in the Gulf of Mexico. It expects future growth from politically stable countries of North America and Australia. In essence, the company is focusing in high yielding and less risky areas such as North America. The shares are expected to be premium class valuation once the results come out. The first quarter revenue was $3.67 billion which is down by 6.9% compared to the previous year. The total onshore liquids production increased 21 percent in first-quarter 2014 compared with the same period in the previous year. The Permian region produced 198K barrels per day, a record performance for North American onshore liquids.
