Apache Corporation (APA), Devon Energy Corp (DVN): One Energy Company has Come Full Circle Looking for Growth

Page 2 of 2

Apache Corporation (NYSE:APA), on the other hand still sees more value in hanging on to its international operations. That is why it is still pursing international growth in Australia, especially through its interest in Chevron Corporation (NYSE:CVX)’s  Wheatstone LNG facility. It’s also partnering with Chevron Corporation (NYSE:CVX) to build the Kitmat LNG facility in Canada. However, outside of its major projects in Australia the crux of its international operations going forward will be to use them as cash cows to fund its growth in North America.

Apache Corporation (NYSE:APA) was actually able to accelerate some of those cash flows just a few weeks ago when it cashed in on a 33% stake of its Egyptian operations for $3.1 billion. What’s even more significant about that deal, which was with China’s Sinopec Shanghai Petrochemical Co. (ADR) (NYSE:SHI), is that it was more than just a simple sale of a stake in its Egyptian assets. It was actually the beginning of a global partnership that will eventually be expanded into other projects. Future expansions could include additional asset stake sales or even new international growth projects.

Still, the bottom line here is that Apache really has come full circle in its search for oil and gas. Its investments overseas have paid off handsomely over the long-term as evidenced by its 12% compound annual production growth rate over the past two decades. However, it is now beginning a new phase in its growth. That is because the real growth these days is in the U.S. as we are in the middle of quite an impressive energy boom.

Three More Companies Profiting From America’s Energy Boom
Apache is well positioned to benefit from the record oil and natural gas production that is revolutionizing the United States’ energy position. However, what’s more important is for you to ensure that your’re portfolio is just as well positioned to profit from this energy boom.

The article 1 Energy Company has Come Full Circle Looking for Growth originally appeared on Fool.com and is written by Matt DiLallo.

Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool recommends Chevron. The Motley Fool owns shares of Devon Energy. 

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2