Rising commodity prices, cash flow and improving financial results have prompted Apache Corp. to plan a 20% dividend increase and another stock split. The company’s share price rose 1% on the news on Friday to $67.16.

Apache’s board voted to increase the quarterly cash dividend on its common stock to 12 cents per share from 10 cents per share, effective with the November dividend payment. The board also voted to split the stock two-for-one early next year, subject to shareholder approval. Apache previously split its stock earlier this year in March and in December 2001.

“Apache’s rising oil and gas production, strong earnings, favorable balance sheet and improving debt-to-capitalization ratio — coupled with current strong commodity prices — warrant the dividend increase and split.” said Apache Chairman Raymond Plank.

Apache shares have surged nearly 50% over the last 12 months, significantly outperforming the broader U.S. stock market. Oil and natural gas prices have risen sharply this year over concerns about tight supplies and low gas storage levels in North America.

Meanwhile, Apache has maintained a strong balance sheet, keeping its debt low, buying energy assets from the majors at attractive prices and focusing on core areas. The company is expecting as much as $1 billion in net income this year with cash flow possibly as high as $2.5 billion (see Daily GPI, Sept. 3). It’s production grew 26% in the second quarter. Apache acquired Gulf of Mexico and North Sea fields this year from BP Plc and Royal Dutch/Shell Group. In July it paid Shell $200 million for 26 mature shallow water fields in the Gulf that cover 50 blocks (209,000 acres) as well as interests in two onshore gas plants (see Daily GPI, July 7).

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