Apache and APA complete of new holding company structure

Source: press release, 1 March 2021

The Beryl Alpha platform is located 180 miles northeast of Aberdeen
The Beryl Alpha platform is located 180 miles northeast of Aberdeen (photo: Apache Corporation)

Apache Corporation and APA Corporation have announced completion of the previously announced holding company structure, making APA the parent holding company of Apache. APA replaces Apache as the public company trading on the Nasdaq stock market under the ticker symbol “APA”.

Each share of Apache common stock outstanding immediately prior to the reorganisation has automatically converted, on a one-for-one basis, into a share of common stock of APA, having the same designation, rights, powers, and preferences and qualifications, limitations, and restrictions as a share of Apache common stock immediately prior to the reorganisation. Accordingly, Apache stockholders automatically became stockholders of APA with the same number and ownership percentage of shares as they held in Apache immediately prior to the reorganisation. Apache now operates as a wholly owned subsidiary of APA. The Board of Directors and the executive officers of Apache immediately prior to the reorganisation continue in their same roles at APA.

The holding company reorganisation, which is intended to be a tax-free transaction for U.S. federal income tax purposes for the Company’s stockholders, will modernise the company’s operating and legal structure, provide financial and administrative flexibility, and more closely align the Company’s legal structure with its growing international presence.

In connection with the reorganisation, APA also acquired the Suriname and Dominican Republic subsidiaries from Apache. Apache continues 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.