A Win-Win Transaction
Today, Apache Corp. filed an amended 8-K that includes the terms of their purchase agreement with BP. Unless you’ve been living in a cave, you’ll get why BP could really use some cash. Apache has jumped on the opportunity to acquire some legacy assets of a major oil company — $7 billion worth of them, in exotic places like Egypt, and, well, Texas and Oklahoma.
There are careful conditions laid out in Article V: Condition of the Properties. This is to be expected, given the environmental liability regulations and the types of properties that Apache is acquiring. After all, they have seen what can happen in the oil and gas business.