It has been reported that BP is in talks with Apache Corporation to sell its ownership of Alaskan Prudhoe Bay oil rights for $10 to $12 billion, to help fund its liabilities related to cleanup efforts, fines and the $20 billion escrow fund promised to the U.S. due to the Deepwater Horizon Oil Spill in the Gulf of Mexico. It became the
U.S.'s first MLP....master limited partnership in 1981. Most MLP's are restriucted to natural resources such as petroleum and natural gas, and most are pipeline businesses.
Because MLPs are a partnership, they avoid the corporate income tax, on both a state and federal basis. Additionally, the limited partner (investor) may also record a pro-rated share of the MLP's depreciation on his or her own tax forms to reduce liability. This is the primary benefit of MLPs.
With corporate headquarters in Houston, Texas it has become a large multinational company, with regional offices and operations in the United States, Argentina, Australia, Canada, Egypt and UK North Sea. In 1980 Apache acquired non-operating interest, (through participation in the Shell Joint Venture) in the Gulf Of Mexico, opening the door to production on the Outer Continental Shelf.
The company began in 1954, and in 1981 Apache created Apache Petroleum Company (APC), which became the US's first master limited partnership (MLP). It combines the tax benefits of a limited partnership with the liquidity of publicly traded securities. Because MLPs are a partnership, they avoid the corporate income tax, on both a state and federal basis. Additionally, the limited partner (investor) may also record a pro-rated share of the MLP's depreciation on his or her own tax forms to reduce liability.
This is the primary benefit of MLPs and gives MLPs relatively cheap funding costs. Because of such stringent provisions on MLPs, and the nature of the QRD, the vast majority of MLPs are pipeline businesses, which earn very stable income from the transport of oil, gasoline or natural gas.
Master Limited Partnerships are limited by US Code to only apply to enterprises that engage in certain businesses, mostly pertaining to the use of natural resources, such as petroleum and natural gas extraction and transportation. Some real estate enterprises may also qualify as MLPs.
In 1986 Apache acquired oil and gas assets from Occidental Petroleum (Oxy), marking Apache’s entry to the Gulf of Mexico as an operator, and in 1987 moved its headquarters from Minneapolis to Denver.
They acquired the MW Petroleum assets from Amoco, in 1991 buying a position in the Permian Basin of West Texas and headquarters were moved to Houston, Texas in '92.
With corporate headquarters in Houston, Texas it has become a large multinational company, with regional offices and operations in the United States, Argentina, Australia, Canada, Egypt and UK North Sea.
Timeline History
* 1954 Apache Oil Corporation is founded in Minneapolis, Minnesota, by Truman Anderson, Raymond Plank and Charles Arnao.
* 1955 The first wells were drilled in the Cushing field, between Tulsa and Oklahoma City.
* 1960 Apache acquired interests in the Foshay Tower (a Minneapolis landmark). The 32-story imitation of the Washington Monument, will become Apache’s headquarters location from the early ‘60s until 1984.
* 1967 Fagerness #1 oil discovery.
* 1969 Apache Corporation shares were listed on the New York Stock Exchange (NYSE: APA).
* 1970 Apache expanded in agriculture with the acquisition of Fresno, California’s S&J Ranch.
* 1971 Apache Corporation formed Apache Exploration Company (subsequently “Apexco”) as the oil and gas operating child company.
* 1977 Following the sale of Apexco, Apache operates GHK's drilling program in the Anadarko basin.
* 1980 Apache acquired non-operating interest (through participation in the Shell Joint Venture) in the Gulf Of Mexico, opening the door to production on the Outer Continental Shelf.
* 1981 Apache created Apache Petroleum Company (APC), US's first master limited partnership (MLP).
* 1986 Apache acquired oil and gas assets from Occidental Petroleum (Oxy), marking Apache’s entry to the Gulf of Mexico as an operator.
* 1987 Apache moved its headquarters from Minneapolis to Denver.
* 1991 Apache acquired the MW Petroleum assets from Amoco, buying Apache a position in the Permian Basin of West Texas.
* 1992 Headquarters moved to Houston, Texas
* 1993 Apache acquires Hadson Energy Resources, expanding Apache's assests to offshore Western Australia.
* 1994 Apache entered Egypt by acquiring a 25 percent non-operated interest in the Qarun Concession alongside the Phoenix Resource Companies.
* 1995 Apache acquired Dekalb Energy Canada Ltd, marking Apache's return to Canada; Apache acquired 315 oil and gas fields in the Permian Basin, the Texas-Louisiana Gulf Coast, western Oklahoma, East Texas, the Rocky Mountains and the Gulf of Mexico from Texaco.
* 1996 Apache merged with Phoenix Resources and took over operations of the Qarun Concession in Egypt.
* 1999 Acquisition of Shell assets in the Gulf of Mexico.
* 2001 Acquisition of $410 million worth of Repsol assets expanded Apache's oil and gas operations in Egypt’s Western Desert.
* 2002 Apache Corporation drilled its first deepwater wells in the West Mediterranean Concession offshore Egypt.
* 2003 Apache acquired the Forties Field, the largest field ever discovered in the United Kingdom North Sea from BP.
* 2005 Apache and ExxonMobil completed a series of agreements that provided for transfers and joint ventures across a broad range of properties in the Permian Basin of West Texas and New Mexico, Western Canada, onshore Louisiana, and the Gulf of Mexico Shelf.
* 2006 Apache completed the sale of its oil production interest in China to Australia-based ROC Oil Company Limited for US$260 million. It also bought a large majority of BP's Gulf of Mexico Shelf properties.
* 2007 A test horizontal well at the Van Gogh project, in Exmouth Gulf, Western Australia, produced 9,694 barrels per day.
* 2007 Apache CEO G. Steven Farris writes to the U.S. Securities and Exchange Commission in favor of limits on nonbinding shareholder proposals at public company annual meetings.
* 2008 Natural gas pipeline explosion at Apache's Varanus Island processing hub on 3 June 2008 curtailed supplies to industrial customers in Western Australia. Apache restored 60 percent of Varanus Island gas deliveries on Aug. 8, 2008.
* 2010 Apache commenced production from Van Gogh development offshore Western Australia.
* 2010 Federal judge upholds Apache's decision to exclude from its annual meeting ballot a corporate governance proposal from a person who had not proven on a timely basis that he actually was one of the company's shareholders.
* 2010 Apache announces planned merger with Mariner Energy for $2.7 billion.
With corporate headquarters in Houston, Texas it has become a large multinational company, with regional offices and operations in the United States, Argentina, Australia, Canada, Egypt and UK North Sea.