Apache Falls in Pre-Market Trading After Agreeing to Buy BP Assets

Apache Corp. (APA) fell in pre-market trading after announcing it will sell shares and agreeing to buy $7 billion of assets from BP (BP).

Apache dropped 1.05%, or 93 cents, to $87.35 in pre-market trading.

On Tuesday, Apache agreed to buy from BP oil and gas facilities and land in the United States, Egypt and Canada. The deal, which is expected to close on July 30, means Apache will acquire oil reserves of at least 385 million barrels.

"This is a rare opportunity to acquire legacy positions from a major oil company," said G. Steven Farris, Apache's CEO.

Also on Tuesday, Apache said it is commencing a registered underwritten public offering of 21 million shares of its common stock. The company is also offering $1.1 billion of mandatory convertible preferred stock.