Apache Unveils $555 Million Acquisition of Texas Delaware Basin Properties
APA Corp. unveiled...
APA Corp. unveiled a $505 million acquisition in the Permian Basin in its earnings release on Aug. 3 where the Houston-based company reported second-quarter profit that nearly tripled.
Apache Corp, a subsidiary of APA, entered into a transaction during the second quarter to acquire properties in the Texas Delaware Basin. The properties, primarily in Loving and Reeves counties, Texas, are located near its existing operations, referred to as a “tuck-in acquisition” in APA investor presentation.
The purchase price was $505 million, and the transaction closed on July 29 for a total cost of $555 million, after including post-effective date adjustments to date.
The national average gas price has fallen for 50 straight days after another drop on Wednesday to $4.16 a gallon, per AAA. It’s down a full 86 cents, or 17%, from the record high of $5.02 hit on June 14. President Biden tweeted that more than half of gas stations in the US are selling gas for less than $4 a gallon.
What’s driving the plunge: The economist’s creed “the best cure for high prices is high prices” seems relevant. As gas prices surged in the early part of the summer, drivers say they’ve cut down on their driving levels, leading to lower demand for fuel.
Almost two-thirds of US adults made adjustments to their driving habits since March, according to AAA’s survey from late July.
Of those who made changes, 88% said they were driving less.
APA Corp, Marathon Oil and Ovintiv boost returns as oil prices surge
U.S. shale producers continued a streak of returning more cash to shareholders this week on the back...
U.S. shale producers continued a streak of returning more cash to shareholders this week on the back of higher oil prices.
Marathon Oil said it returned some $816 million to shareholders during the quarter, while rival Ovintiv returned roughly $200 million during the second quarter and said it expects to almost double that during the current quarter.
APA Corp reported on Wednesday a second-quarter profit that nearly tripled. Net income attributable to common stock rose to $926 million, or $2.71 a share, in the quarter, from $316 million, or 82 cents per share, a year earlier.
People look to this metric as a gauge of investor sentiment, and right now it signals that investors are bracing for a downturn.
"While the SSI does not catch every rally or decline in the stock market, the indicator has historically had some predictive capability with respect to subsequent 12-month S&P 500 total returns," BofA analysts said Wednesday.
Benchmark U.S. crude oil for September delivery...
Benchmark U.S. crude oil for September delivery fell $3.76 to $90.66 a barrel Wednesday. Brent crude for October delivery fell $3.76 to $96.78 a barrel.
Wholesale gasoline for September delivery fell 15 cents to $2.91 a gallon. September heating oilrose 3 cents to $3.41 a gallon. September natural gasrose 56 cents to $8.27 per 1,000 cubic feet.
