The board members of hydrocarbon exploration firm Apache Corp have given their approval to create a new holding company called APA Corporation.
If formed, the new company would replace the exploration firm as the public company trading on the Nasdaq stock exchange (NSE).
Upon the formation of the new company, Apache will become a unit of APA and continue to hold assets in the US, as well as existing subsidiaries in Egypt and the UK.
Apache will also continue to retain its current ‘economic interests’ in Altus Midstream and Altus Midstream.
Apache CEO and president John J Christmann IV said: “These steps modernize our operating and legal structure, making it more consistent with other companies that have subsidiaries operating around the globe.
“A holding company offers advantages in risk management, provides financial and administrative flexibility, and more closely aligns our legal structure with our growing international presence.”
APA will acquire the Suriname and Dominican Republic subsidiaries from Apache after its formation.
Apache’s existing shares will be converted, on a ‘one-for-one’ basis, into shares of APA common stock, which will retain the ‘APA’ ticker symbol.
The restructuring of the holding company is scheduled for completion in the first half of this year.
Last September, Apache gathered further reservoir and technical data from its Kwaskwasi-1 discovery well in Block 58 offshore Suriname and started drilling at another location within the block.