Leading independent energy player Apache Corp. APA might get acquired by Occidental Petroleum Corporation OXY as per energy industry job site Oilandgaspeople.com. The estimated deal value could be at least $25 billion.
The source mentioned that the deal will be beneficial for both players as the combined entity would be a major energy firm. It is to be noted that the merged company will likely produce 1.1 million barrels of oil equivalent every day which is below 50% of the production of Chevron Corporation (CVX), one of the largest integrated energy companies in the world.
The source said that the deal will soon be revealed by Apache to its employees. However, Occidental Petroleum totally denied this comment and added that it doesn’t have any knowledge about it.
Founded in 1954, Houston, TX-based Apache is one of the world's leading independent energy companies engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids.
Occidental Petroleum is also based in Houston. The company is an integrated oil and gas company, with significant exploration and production exposure. The company is also a producer of a variety of basic chemicals, petrochemicals, polymers and specialty chemicals.
Currently, both Apache and Occidental Petroleum carry a Zacks Rank #3 (Hold), implying that the companies will perform in line with the broader U.S. equity market over the next one to three months.
Some better-ranked players in the energy sector are PetroChina Co. Ltd. PTR and McDermott International Inc. MDR. Each of these players sports a Zacks Rank #1 (Strong Buy).
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