Apache says big acquisition possible by year-end

Exploration and production independent Apache Corp. says it should have more than $1 billion in discretionary cash by the end of the year and that a chunk of it would be available for a large acquisition, possibly by year-end.

“We are constantly looking for good things to buy,” Steve Farris, Apache's chief executive officer, said Sept. 16 at the RBC Capital Markets energy conference in Houston, Texas.

However, Farris indicated that Apache probably would not use all of its cash reserves on a single deal, primarily because that would stretch the company's balance sheet. Earlier this year Apache coughed up $1.3 billion to acquire BP properties in the North Sea and on the Gulf of Mexico's continental shelf.

Farris said that if Apache were to do another large deal this year, it likely would be in the range of $400-to $500 million. He said Apache would be most interested in buying properties in areas where the company already does business, adding that it would be unlikely for Apache to seek out a new core area through an acquisition.