Apache Corporation (Nasdaq: APA) said on Monday that its Board of Directors has authorized the company to create a holding company structure. Upon its formation, APA Corporation, the new holding company, will replace Apache Corporation as the public company trading on the Nasdaq stock exchange.
Existing shares of Apache will be automatically converted, on a one-for-one basis, into shares of common stock of APA Corporation, which will retain the ticker symbol “APA”. The Board and the executive officers of Apache will continue in their same roles at the new company.
APA Corporation will acquire the Suriname and Dominican Republic subsidiaries from Apache Corporation. Apache Corporation will become a direct subsidiary of APA Corporation and will continue to hold existing assets in the U.S., subsidiaries in Egypt and the U.K., and its current economic interests in Altus Midstream Company (Nasdaq: ALTM) and Altus Midstream LP.
“These steps modernize our operating and legal structure, making it more consistent with other companies that have subsidiaries operating around the globe,” said John J. Christmann IV, Apache’s Chief Executive Officer and President. “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.”
The holding company restructure is expected to be completed during the first half of 2021.
Apache has made three oil discoveries at Block 58 offshore Suriname and has been in the process of transitioning operatorship of the Block to Total.
