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U.S. Movers: Apache, Berkshire Hathaway, Campbell Soup, L Brands

Author: Mukesh Buch
Last Update: 8:58 AM ET July 07 2017

2:10 PM New York – Apache agreed to sell its three units in Canada for $713 million. Berkshire Hathaway Energy to bid for Texas power transmitter Oncor for $9 billion. Campbell Soup plans to acquire privately held Pacific Foods for $700 million. L Brands June sales decline.

Tollbooth Index jumped 99.58 or 0.8% to 12,040.12.

Earnings Review

Apache Corporation slipped 1.6% or 75 cents to $45.02 after the oil and gas producer agreed to sell its three subsidiaries including Canadian subsidiary in the provinces of Alberta and British Columbia to Paramount Resources Ltd for about $713 million.

With the latest two transactions, Apache has completely exited from Canada. In June, Apache sold its assets at Midale and House Mountain, located in Saskatchewan and Alberta to Cardinal Energy Ltd based in Calgary, Canada.

Apache Canada operations averaged approximately 300 million cubic feet of gas equivalent per day in the six months to June 2017 of which approximately two-thirds production was from natural gas.

The Cardinal transaction closed in late June, and the remaining two transactions are expected to close by the end of August 2017. The company said it will update its financial results guidance after the completion of the two transactions.

Berkshire Hathaway Inc traded at $255,550 after its energy subsidiary today agreed to acquire Texas power transmitter Oncor Electric Delivery Company LLC for $9 billion including debt, implying an equity value of about $11.25 billion.

The enterprise value of the company at the transaction price is about $18 billion and the transaction is expected to close in the fourth-quarter.

Campbell Soup Company (CPB) rose 12 cents to $51.80 after the packaged food provider said it plan to acquire privately held Pacific Foods, an organic soups and broths maker for about $700 million in cash.

L Brands Inc (LB) fell 45 cents to $46.04 after the specialty retailer reported net sales in the five-weeks ending on July 1 dropped 6% from a year ago to $1.2 billion.

Comparable sales in June declined 9%.

The retailer said its exit from swim and apparel categories had negative impact of about 7 percentage points and 10 percentage points to total company and Victoria’s Secret comparable sales, respectively.
Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc