APA Announces Agreement for $950 Million Asset Sale of Non-core Properties in the Permian Basin
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.
APA ha annunciato la vendita di proprietà non core nel bacino permiano per 950 milioni di dollari. Le proprietà, situate in varie aree del Texas e del New Mexico, attualmente producono circa 21.000 barili di equivalente petrolio al giorno, di cui il 57% è petrolio. La transazione, prevista per la conclusione nel quarto trimestre del 2024, utilizzerà principalmente i proventi per ridurre il debito.
Il CEO John J. Christmann IV ha sottolineato che questa vendita, insieme ad altre transazioni, ha ottimizzato e focalizzato la base patrimoniale di APA negli Stati Uniti. L'azienda ha aumentato la propria produzione onshore negli Stati Uniti di circa 66.000 boe/d nel 2024 senza modificare sostanzialmente i livelli di debito netto rispetto alla fine dell'anno 2023. La guida pro-forma per la produzione nel quarto trimestre negli Stati Uniti è fissata a 307.000 boe/d, un aumento del 34% rispetto al quarto trimestre del 2023.
APA ha anunciado la venta de propiedades no centrales en producción en la cuenca del Pérmico por 950 millones de dólares. Las propiedades, ubicadas en varias áreas de Texas y Nuevo México, actualmente producen aproximadamente 21,000 barriles de equivalente de petróleo por día, de los cuales el 57% es petróleo. La transacción, que se espera que se cierre en el cuarto trimestre de 2024, utilizará principalmente los ingresos para reducir la deuda.
El CEO John J. Christmann IV destacó que esta venta, junto con otras transacciones, ha optimizado y enfocado la base de activos de APA en EE. UU.. La compañía ha incrementado su producción onshore en EE. UU. en aproximadamente 66,000 boe/d en 2024 sin cambiar materialmente los niveles de deuda neta en comparación con el final de 2023. La guía proforma de producción de EE. UU. para el cuarto trimestre se establece en 307,000 boe/d, un aumento del 34% con respecto al cuarto trimestre de 2023.
APA는 비핵심 생산 자산을 퍼미안 분지에서 9억 5천만 달러에 매각한다고 발표했습니다. 텍사스와 뉴멕시코의 여러 지역에 위치한 이 자산은 현재 하루에 약 21,000 배럴의 석유 환산물을 생산하고 있으며, 그중 57%는 석유입니다. 거래는 2024년 4분기에 마감될 것으로 예상되며, 수익금의 대부분은 부채 감소에 사용될 것입니다.
CEO인 John J. Christmann IV는 이 매각이 다른 거래와 함께 APA의 미국 자산 기초를 고도화하고 집중화했다고 강조했습니다. 회사는 2023년 연말에 비해 순부채 수준을 실질적으로 변화시키지 않고 2024년에 미국 내 온shore 생산을 약 66,000 boe/d 증가시켰습니다. 4분기 미국 생산 예상치는 307,000 boe/d로 설정되어 있으며, 이는 2023년 4분기 대비 34% 증가한 수치입니다.
APA a annoncé la vente de propriétés non essentielles dans le bassin permien pour 950 millions de dollars. Les propriétés, situées dans diverses zones du Texas et du Nouveau-Mexique, produisent actuellement environ 21 000 barils d’équivalent pétrole par jour, dont 57 % est du pétrole. La transaction, prévue pour se clôturer au quatrième trimestre 2024, utilisera principalement les recettes pour réduire la dette.
Le PDG John J. Christmann IV a souligné que cette vente, ainsi que d'autres transactions, a optimisé et recentré la base d'actifs d'APA aux États-Unis. L'entreprise a augmenté sa production terrestre aux États-Unis d'environ 66 000 boe/d en 2024 sans changer de manière significative les niveaux de dette nette par rapport à la fin de 2023. Les prévisions de production pro forma pour le quatrième trimestre aux États-Unis sont fixées à 307 000 boe/d, soit une augmentation de 34 % par rapport au quatrième trimestre 2023.
APA hat den Verkauf von nicht zum Kerngeschäft gehörenden Produktionsanlagen im Permianbecken für 950 Millionen Dollar angekündigt. Die Immobilien, die sich in verschiedenen Regionen von Texas und New Mexico befinden, produzieren derzeit schätzungsweise 21.000 Barrel Öläquivalent pro Tag, wobei 57 % Öl ist. Die Transaktion, die voraussichtlich im 4. Quartal 2024 abgeschlossen wird, plant hauptsächlich die Erlöse zur Schuldentilgung zu verwenden.
CEO John J. Christmann IV hob hervor, dass dieser Verkauf, zusammen mit anderen Transaktionen, die US-Aktivaportfolio von APA optimiert und fokussiert hat. Das Unternehmen hat seine onshore Produktion in den USA um etwa 66.000 boe/d im Jahr 2024 erhöht, ohne die Nettoverschuldung im Vergleich zum Jahresende 2023 wesentlich zu verändern. Die pro forma Produktionsprognose für das 4. Quartal in den USA liegt bei 307.000 boe/d, was einem Anstieg von 34 % gegenüber dem 4. Quartal 2023 entspricht.
- 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
- Divestiture of assets producing 21,000 boe/d, potentially impacting overall production
Insights
APA's
Post-transaction, APA's pro-forma Q4 U.S. production guidance of 307,000 boe/d, a
APA's divestment of non-core Permian assets while retaining scale in the Midland and Delaware Basins demonstrates a calculated approach to portfolio optimization. The
The company's enhanced position in unconventional plays, coupled with its global conventional portfolio, provides a balanced risk profile. This diversification strategy could prove advantageous in navigating market volatility. The mention of 'differential exploration upside' hints at potential future growth catalysts, which could set APA apart from pure-play Permian peers. Investors should watch for details on how APA plans to leverage this diversified portfolio for long-term value creation.
APA's strategic moves, including the Callon Petroleum acquisition and subsequent asset sales, position it competitively among mid-sized Permian operators. The company's claim of a favorable comparison to pure-play peers in terms of asset quality and logistics is noteworthy. However, investors should seek concrete metrics to validate this assertion.
The transaction's timing, amid industry consolidation trends, suggests APA is proactively shaping its portfolio. The retention of advisors like RBC Richardson Barr and Truist Securities indicates a well-structured deal process. Market reaction will likely hinge on how effectively APA articulates its post-transaction growth strategy and differentiators. Key factors to monitor include production efficiency metrics, operating costs and the company's ability to translate its diversified portfolio into superior returns compared to peers.
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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