Apache Corp. Q1 Profit Decreases; To Sell Lucius And Heidelberg Developments

(RTTNews) - Apache Corp. (APA) reported first-quarter earnings from continuing operations of $753 million or $1.90 per share, compared to $759 million or $1.91 per share, last year. Total earnings per share was $0.60, compared to $1.76, a year ago. Adjusted earnings was $707 million or $1.78 per share, for the quarter.

On average, 31 analysts polled by Thomson Reuters expected the company to report profit per share of $1.62 for the quarter. Analysts' estimates typically exclude special items.

Total revenues decreased to $3.67 billion from $3.95 billion. Analysts expected revenue of $3.56 billion for the quarter. Freeport-McMoRan Copper & Gold Inc. (FCX) and Apache Corp. announced a definitive purchase and sale agreement to acquire certain of Apache Corporation's interests in the Deepwater Gulf of Mexico, including Apache's interests in the Lucius and Heidelberg oil production development projects and 11 exploration leases, for $1.4 billion. The transaction is expected to close by June 30, 2014.

Freeport-McMoRan said the Deepwater GOM acquisition will be funded with proceeds from the previously reported sale of FM O&G's Eagle Ford Shale assets. The estimated combined after-tax net proceeds from these transactions of approximately $1.3 billion will be used to repay outstanding indebtedness following closing of the transactions, Freeport-McMoRan noted.