Why Sinopec Shanghai Petrochemical Co. (ADR) (SHI) Deal Bodes Well for Apache Corporation (APA)

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The bottom line

It’s clear that Apache recognizes that its presence in Egypt is a major concern for shareholders. In the second-quarter conference call, CEO Steve Farris reassured investors that the company is working on finding “a way to validate the value of Egypt for our shareholders.”

While Apache still has substantial exposure to Egypt, the recent transaction with Sinopec Shanghai Petrochemical Co. (ADR) (NYSE:SHI) certainly appears to be a well-executed step in accomplishing this objective. It also shows that the company is determined to successfully complete its asset sale strategy, having also recently sold $3.75 billion worth of Gulf of Mexico assets to private-equity firm Riverstone Holdings LLC during the second quarter.

The article Why Sinopec Deal Bodes Well for Apache originally appeared on Fool.com and is written by Arjun Sreekumar.

Fool contributor Arjun Sreekumar owns shares of Chesapeake Energy and Devon Energy. The Motley Fool owns shares of Devon Energy.

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