NEW YORK (TheStreet) -- Apache Corp. (APA) , the Houston-based oil producer considering plans to sell international assets because of investor pressure, announced the largest discovery in 20 years off the coast of Western Australia, Bloomberg reported.
The Canning Basin may hold as many as 300 million barrels of oil, the company said today. Apache holds a 40% stake in the area that includes the Phoenix South-1 well.
"This discovery should help increase the attractiveness of the international portfolio to potential buyers," according to Capital One Southcoast. The discovery should increase Apache's value by $2 a share, the firm said.
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Apache last month announced it will sell its stake in two natural gas export projects, including one in Australia, and consider a sale or separation of international assets. The announcement came after Jana Partners LLC, a New York-based hedge fund, disclosed a $1 billion stake in the company and said it was pushing for a split to free up cash for share buybacks and reduce spending risks , according to Bloomberg.
Shares of Apache closed down -0.18% to $98.50.
TheStreet Ratings team rates APACHE CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate APACHE CORP (APA) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."