Apache Sells Australian Subsidiary for $2.1 bn

Apache Corp has agreed to sell its Australian subsidiary Apache Energy to a consortium of private equity funds managed by Macquarie Capital Group and Brookfield Asset Management for $2.1 billion.

The transaction is expected to close mid-year 2015 and is subject to necessary government and regulatory approvals and customary post-closing adjustments, Apache said in a statement published Wednesday. The effective date of the sale is October 1, 2014.

With the announcement of this sale, Apache is fully exiting its exploration and production business in Australia, but will retain its 49-percent ownership interest in fertilizer producer Yara Pilbara Holdings.  On April 2, 2015, Apache announced the completion of sale of its Wheatstone LNG project and related oil and natural gas properties to Woodside Petroleum for $2.8 billion.

“Following the sale of our Australian assets, approx. 70% of Apache's production will come from North America onshore. Our robust North American position is complemented by our North Sea and Egyptian regions, which have an extensive inventory of prospects and assets that generate free cash flow,” said John J. Christmann, IV, chief executive officer and president.