BP Sells $7 Billion in Assets to Apache

To raise money to cover the Gulf spill, BP made a deal to sell $7 billion in assets to Apache corp (APA).

Apache will get oil and gas properties in Texas, western Canada and Egypt. BP will
get a $5 billion cash deposit on July 30. Apache will finance the purchase through a combination of debt, equity, and cash.

As a long time Apache shareholder, I like this move because it typifies how this oil company has grown over time: buying older, under-capitalized assets from oil majors.

In this case, BP will get some quick cash to help them cover spill claims, but Apache shareholders will reap much more over time, as the oil from these assets are extracted, processed, and sold.

I have owned Apache for over 4 years, and have done well.

As with most of my stock investments, I bought Apache based on fundamentals, and used my Stock Trading Riches technical system to trade around the core holding.