CALGARY _ U.S. energy firm Apache Corp.
, Stock Forum
) says it's exiting the Kitimat LNG project in British Columbia, which it had been developing with Chevron (NYSE: CVX,Stock Forum), and another liquefied natural gas project in Australia.
The company said in a press release
the move is consistent with its ongoing repositioning for profitable and repeatable North American onshore growth.
News of the Kitimat exit was released along with Apache’s second quarter financial results, which included earnings of $505 million or $1.31 per diluted common share and adjusted earnings, excluding certain items that impact the comparability of results, of $644 million or $1.67 per share.
That compares to year earlier earnings of $1 billion or $2.54 per diluted common share and adjusted earnings were $813 million or $2.04 per share.
Apache shares rose 2.6% to $103.97 on Thursday, leaving a market cap of $40.1 billion, based on 385.7 million shares outstanding. The 52-week range is $104 and $75.07.
Published reports say the Kitimat LNG project is the most advanced of at least a dozen proposed natural gas export facilities planned for Canada’s West Coast.
The reports say Apache has been under pressure from New York hedge fund Jana Partners LLC, an activist investor, to sell assets.
LNG is a natural gas that has been cooled into a liquid state, enabling it to be shipped to global markets in ocean-going tankers.