APA Announces Agreement for $950 Million Asset Sale of Non-core Properties in the Permian Basin
Rhea-AI Summary
APA has announced the sale of non-core producing properties in the Permian Basin for $950 million. The properties, located in various areas of Texas and New Mexico, currently produce an estimated 21,000 barrels of oil equivalent per day, with 57% being oil. The transaction, expected to close in Q4 2024, will primarily use proceeds to reduce debt.
CEO John J. Christmann IV highlighted that this sale, along with other transactions, has high-graded and focused APA's U.S. asset base. The company has increased its onshore U.S. production by approximately 66,000 boe/d in 2024 without materially changing net debt levels compared to year-end 2023. Pro-forma Q4 U.S. production guidance is set at 307,000 boe/d, a 34% increase from Q4 2023.
Positive
- Sale of non-core assets for $950 million, improving focus on core operations
- Proceeds to be used primarily for debt reduction
- Increased onshore U.S. production by 66,000 boe/d in 2024
- Pro-forma Q4 U.S. production guidance of 307,000 boe/d, 34% above Q4 2023
- Maintained net debt levels compared to year-end 2023 despite acquisitions
Negative
- Divestiture of assets producing 21,000 boe/d, potentially impacting overall production
News Market Reaction 1 Alert
On the day this news was published, APA declined 1.01%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
HOUSTON, Sept. 10, 2024 (GLOBE NEWSWIRE) -- APA Corporation (Nasdaq: APA) announced today entry into an agreement for the sale of non-core producing properties in the Permian Basin to an undisclosed buyer for
“Through multiple transactions completed this year, we have high graded and focused our U.S. asset base. Our remaining Permian position has scale and balance in the unconventional Midland and Delaware Basins,” said John J. Christmann IV, CEO of APA Corporation. “The net impact of our acquisition of Callon Petroleum and the follow-on asset sales is that APA has increased its onshore U.S. production by approximately 66,000 boe/d in 2024 and continued to add economic unconventional inventory, with no material change in net debt levels compared to year-end 2023.”
Pro-forma fourth-quarter U.S. production guidance is 307,000 boe/d which is
Christmann continued, “The company’s more focused unconventional Permian asset base and advantageous transport and marketing positions compares favorably with like-sized, pure-play peers in the region, while APA’s conventional global portfolio also provides geologic, geographic and price diversification as well as differential exploration upside.”
RBC Richardson Barr served as the lead financial advisor to APA and Truist Securities also served as financial advisors; Bracewell LLP provided legal counsel to APA.
About APA
APA Corporation owns consolidated subsidiaries that explore for and produce oil and natural gas in the United States, Egypt and the United Kingdom and that explore for oil and natural gas offshore Suriname and elsewhere. APA posts announcements, operational updates, investor information and press releases on its website, www.apacorp.com.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “continues,” “could,” “estimates,” “expects,” “goals,” “guidance,” “may,” “might,” “outlook,” “possibly,” “potential,” “projects,” “prospects,” “should,” “will,” “would,” and similar references to future periods, but the absence of these words does not mean that a statement is not forward-looking. These statements include, but are not limited to, statements about future plans, expectations, and objectives for operations, including statements about our capital plans, drilling plans, production expectations, asset sales, and monetizations. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See “Risk Factors” in APA’s Form 10-K for the year ended December 31, 2023, and in our quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission for a discussion of risk factors that affect our business. Any forward-looking statement made in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. APA and its subsidiaries undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development or otherwise, except as may be required by law.
Contacts
| Investors: | (281) 302-2286 | Gary Clark |
| Media: | (713) 296-7276 | Alexandra Franceschi |
| Website: | www.apacorp.com | |
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FAQ
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