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So much Apache is making a big move to position itself.
Four for the fracking -- right here in the US the company striking -- two point 85 billion dollar deal to acquire privately held.
According year energy partners joining us now on the phone.
Is -- I where chief operating officer and Apache they so much for getting to a phone to join us we really appreciate it.
Let me ask you so you're doubling down on your investment here in a place called granite wash it straddles the Texas Oklahoma border this is largely a fracking play.
How -- is fracking to America's energy future.
They'll fracking is very important process -- modern.
With -- -- -- of particular mostly young conventional.
Please now require that -- application of technology to release speak.
The gas and oil from otherwise would have been traditionally known as a shield or source rocks and not mr.
-- -- rocks.
Our situation in the Anadarko based in the we've been operating their for over fifty years -- -- Literally thousands of the vertical -- goodness you're very familiar with it -- this is -- natural extension.
We call a bolt on opportunity general backyard for exporting are positioned for gas -- -- oil and -- You were essentially doubling your exposure doubling your acreage in this area.
I know you're invested around the world from Egypt to Australia is this a -- to get more exposure.
To soil here in the US and limit your exposure places like Egypt where you know obviously political turmoil has made it -- challenge.
Well we maintain -- portfolio approach -- between oil and gas in North America.
Investments in -- international that this is a natural fit for us to expand our.
Our emphasis in the WS spoke you believe what we're about yarder traditional play here in Anadarko basically we've got a -- for a long time.
-- gold last year's move.
In the commendation leader to recorder source United States.
-- this isn't the second time from what I understand at patch is made an acquisition worth more than 500.
Billion dollar -- twice the risk worth it is this fracking really the strategy to turn a meaningful profit in the industry.
-- to our case the that application that -- -- cure which is been utilized our industry presumption of in the years and -- -- the Iraqis.
Is to natural extension of -- maximizing the the recovery of borrowing -- from these nontraditional -- divorced and I.
Expected to reach -- return that we can expect from these projects will be definitely.
Better don't we saw from the political will program expect -- own growing experience with the horrible -- methods we've employed olestra will years bear that out.
Will the acquisition be immediately accretive earnings dear -- -- -- metrics.
Let me ask you -- this news comes on the heels that Chesapeake Energy saying today that they are gonna dial back on their drilling for natural gas and light -- that.
Just a follow up that we've seen in natural gas prices does that price decline make you nervous about any of your investments going forward.
Well the -- we made with according Europe is principally use liquid rich gas play in the Anadarko.
Well over 50% of the U the production news is that is look with both -- -- oil and natural gas liquids.
And that really you know both economics and that would compared -- -- -- I -- place explains they'll.
Yet -- I I know this is mostly wet barrels but you are exposed to natural gas and other areas of your business are you thinking about cutting back anywhere else because of the decline in natural gas prices are -- -- not think that that's gonna continue.
Well we anticipate.
-- the gas prices due to -- the rapid expansion.
Guess supply to.
We're not growing and orchestrate fractured operations do -- through unconventional resource plays the -- mentally.
They listen before we maintain a barrels portfolios so.
So we have pretty heavy weighting in people waiting -- be gas and oil North America -- international.
In our international -- of course is quite much stick with the north murky guess -- received a significant premium real complete is that North American -- So patch he's been in this region re doing acquisition for some 35 years outside the fracking so where do you expand next what's the next -- here after this acquisition is closed.
But of course -- -- first -- for first appeared to bring in the closed deal and they get on to achieving the value that we anticipate by.
Going the first couple thousand -- -- in the in the inventory of -- terrible years.
We're very opportunistic company -- account deposition -- were no it's hard to plan for the don't know what -- -- present itself.
These areas that they -- to our existing portfolio what we have expertise -- presents for many many decades but the ideal want to put our portfolio.
So are you looking at other deals right now -- other acquisitions on the horizon.
But we -- we're always looking -- were always increased.
Discussion opportunities so -- -- is part of our normal business.
End up forty guard just ask you two quick reaction of the Keystone Pipeline do you think that that was would have been important to the US.
I think the opportunity to bring large core -- into the US markets.
There's definitely Tuesday.
Would be beneficial for our business to.
To remove that from a quality of oil would otherwise could be imported from -- less -- you're -- Qualified.
Rod tackler chief operating off her at Apache thank you so much for getting -- balancing become -- -- we really appreciate it.
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