Apache Corp said Thursday it has acquired Permian Properties from Marathon Oil Corp for $187.4 million after it posted better than expected first quarter profits amidst the global recessions.
It has agreed to acquire nine Permian Basin oil and gas plant of Marathons operated assets, which has 914,226 gross acres (447,760 net) and net production of 3,500 barrels of oil and 86 million cubic feet (MMcf) of gas per day.
These fields are a great fit with Apache's existing properties in the Permian Basin, particularly in Lea County, N.M., said John Crum, Apache's co-chief operating officer and president - North America. Although this is a modest transaction, it is an opportunity to add to our substantial position in the area.
San Francisco-based Apache posted better than expected first quarter net loss of $1.76 billion or $5.25 per share compared to net income of $1.02 billion or $3.03 per share a year earlier. Oil and gas production rose to 6 percent to 548,279 barrels of oil equivalent per day.
Meanwhile, Houston based Marathon reportedly a net profit of $282 million in the first quarter down from $731 million same period last year, or 40 cents per share from $1.02 per share, with 429,000 barrels of oil per day.
As of now, Apache has about $4 billion in cash and at 25 percent debt of capitalization, said G. Steven Farris, The chairman and chief executive officer, Which we are in a good position to take advantage of opportunities as they emerge in today's low commodity-price environment. ¬
Shares of apache rose $3.77 to 5.39 percent at $73.60 in the regular trading. While Marathon fell 35 cents to 1.15 percent at $30.16.