(RTTNews) - Natural gas explorer Apache Corp. (APA: News ) said Friday that it elected to redeem all $100 million of its outstanding 5.68% Cumulative Preferred Stock, Series B, no par value per share on December 30.

The Series B Preferred Stock will be redeemed at a redemption price of $1,000 per share, plus $9.47 in accrued and unpaid dividends, through the Series B Redemption Date, for an aggregate redemption price of $1,009.47 per share of Series B Preferred Stock.

Apache has also authorized Wells Fargo Bank, N.A., as Depositary under the Deposit Agreement dated as of Aug. 25, 1998, to simultaneously redeem all its Depositary shares, each representing one-tenth of one share of Series B Preferred Stock, on December 30.

The Depositary shares will be redeemed at a redemption price of $100 per share, plus $0.947 in accrued and unpaid dividends, through the Depositary shares redemption date, for an aggregate redemption price of $100.947 per Depositary share. The Depositary shares will be redeemed from the proceeds received by the Depositary resulting from the redemption of the Series B Preferred Stock.
The Depositary shares, which were issued in book entry form, are not listed on a stock exchange.

Apache said it ended the third quarter with $1.4 billion in cash on its balance sheet, and debt was 25% of total capitalization. By redeeming the Preferred Stock with cash that is currently invested in short-term U.S. government securities, Apache intends to further reduce its average cost of funds.

APA closed Wednesday's regular trade at $97.95, up from the previous close of $97.24, on 2.95 million shares.

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by RTT Staff Writer

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