U.S-based energy company Apache Corp. said it freed up capital to direct at strategic parts of its portfolio after leaving the Canadian market.
Apache said it's departed Canada after selling off a subsidiary and assets in provinces ranging from Alberta to British Columbia. President and Chief Executive Officer John J. Christmann IV said in a statement the exit gives his company a better footing in the United States, the British North Sea and in Egypt.
"This strategic decision will enhance the company's resource allocation to its primary growth areas, particularly within the Permian basin [in Texas]," he said.
Data from the U.S. Energy Information Administration show Permian crude oil and natural gas production moving slightly lower from month-to-month. The number of rigs deployed in the Permian basin has increased, but the new-well production per rig has declined.
After more than two years of testing and research, Apache in September confirmed a significant discovery on the southern part of the Delaware shale basin in Texas that it dubbed Alpine High. The company said it estimated in-place reserves of around 75 trillion cubic feet of natural gas and 3 billion barrels of oil.
In a June report, the Federal Reserve Bank of Dallas said state oil and gas production increased for the third quarter in a row, but the pace of growth was slower than the last quarter.
Apache's net production from Canadian operations was mostly in the form of natural gas. The $713 million in proceeds from the Canadian exit will be used to cut debt, with unspent revenue going toward the remaining strategic parts of its portfolio.
"With our decision to exit Canada, Apache's resulting global portfolio is more streamlined and our resources more focused," Christmann said.
In its statement for the first quarter, Apache said it returned to profit, reporting earnings of $213 million. The company was the target of an all-stock takeover offer from rival Anadarko Petroleum Corp. in 2015 after taking a multi-billion dollar quarterly loss.
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