APA Corporation Announces Early Results of Private Exchange Offers, Tender Offers, and Consent Solicitations, Extension of Early Consent Date, Waiver of Requisite Consent Condition, and Guarantee by Apache Corporation of the APA Notes to be Issued in the Exchange Offers; APA Corporation to Hold Related Investor Call

Rhea-AI Summary

APA (Nasdaq: APA) announced early results of its private exchange offers, tender offers, and consent solicitations for Apache notes. The company extended the Early Consent Date to December 20, 2024, with offers expiring on January 7, 2025, and settlement expected on January 10, 2025.

The exchange offers allow eligible holders to exchange Apache notes for new APA notes, while tender offers propose to purchase up to $1 billion aggregate principal amount of certain Apache notes for cash. As of December 16, 2024, significant portions of various note series were tendered, with the 2049 Notes showing the highest participation at 71.96% and the 2040 Notes at 68.06%.

APA waived the Requisite Consents condition for certain offers and announced that Apache will guarantee the new APA Notes on terms similar to APA's 2022 syndicated credit facilities. The company will hold an investor call on December 17, 2024, to discuss the offers' terms.

HOUSTON, Dec. 17, 2024 (GLOBE NEWSWIRE) -- APA Corporation (“APA”) (Nasdaq: APA) announced today the early results as of 5:00 p.m., New York City time, on December 16, 2024 (the “Original Early Consent Date”) of the previously announced (i) offers to exchange (the “Exchange Offers”) any and all validly tendered and accepted notes and debentures listed in the table below issued by Apache Corporation, its wholly-owned subsidiary (“Apache”), for new notes to be issued by APA (the “APA Notes”), (ii) offers to purchase for cash (the “Tender Offers” and together with the Exchange Offers, the “Offers”) up to $1,000,000,000 aggregate principal amount of any and all validly tendered and accepted Apache Notes of certain series (the “Apache Tender Notes”), and (iii) solicitations of consents (the “Consent Solicitations”) to certain proposed amendments (the “Proposed Amendments”) to the applicable indenture under which each series of Apache Notes was issued. Additionally, APA announced that the date by which Eligible Holders (as defined in the Offering Memorandum referred to below) must validly tender their Apache Notes to receive the Exchange Total Consideration or the Tender Total Consideration (each as described below), as applicable, for each Offer has been extended to 5:00 p.m., New York City time, on December 20, 2024 (the “Extended Early Consent Date”). The Offers and Consent Solicitations will now expire at 5:00 p.m., New York City time, on January 7, 2025 (the “Expiration Time”), and the Offers are now expected to settle on January 10, 2025 (the “Settlement Date”).

APA also announced today that it has waived the condition for the receipt of the Requisite Consents (as defined below) to the Proposed Amendments for those Offers pursuant to which such condition has not been met. Previously, acceptance for exchange or payment of any Apache Notes of a series in the Offers was conditioned upon the receipt and acceptance of the Requisite Consents for such series (as further described in the Offering Memorandum and in footnote 2 to the chart below).

In addition, APA announced today that the payment of each series of the APA Notes issued in the Exchange Offers will be guaranteed by Apache on substantially the same terms as the guarantees under APA’s 2022 syndicated credit facilities, including that such guarantees will be effective until the first time that the aggregate principal amount of indebtedness under senior notes and debentures outstanding under Apache’s existing indentures is less than $1,000,000,000; provided that if the aggregate principal amount of such indebtedness is less than $1,000,000,000 as of the Settlement Date giving effect to settlement of the Offers, then the reason for such guarantees would have ceased to exist and no guarantees would be issued upon such settlement.

APA does not intend to make any further amendments to the Offers, except that APA reserves the right to increase, decrease, or eliminate one or more Series Caps and/or the Maximum Purchase Amount, subject to applicable law.

APA will hold a call with Eligible Holders on Tuesday, December 17, 2024, at 11:00 a.m., New York City time, to discuss certain terms of the Offers and the APA Notes. The Lead Dealer Managers (identified below) will provide Eligible Holders with information to access the call.

Except as described in this press release, all other terms and conditions of the Offers remain unchanged and are described in APA’s Offering Memorandum and Consent Solicitation Statement, dated as of December 3, 2024 (the “Offering Memorandum”). Capitalized terms used but not defined in this press release have the meanings given to them in the Offering Memorandum.

An Eligible Holder’s right to withdraw all or a portion of such holder’s tendered Apache Notes from the Offers and Consent Solicitations expired as of 5:00 p.m., New York City time, on December 16, 2024.

APA was advised by D.F. King & Co., Inc., the Tender Agent and Information Agent for the Offers and the Consent Solicitations, that as of the Original Early Consent Date, the aggregate principal amounts of the Apache Notes specified in the table below were validly tendered and not validly withdrawn with respect to the Offers (and consents thereby validly given and not validly revoked).

CUSIP No.	Series of notes or debentures issued by Apache (collectively, the “Apache Notes”)	Aggregate principal amount outstanding		Principal amount tendered in the Exchange Offers as of the Original Early Consent Date		Principal amount tendered in the Tender Offers as of the Original Early Consent Date (1)		Percentage of aggregate principal amount outstanding tendered in the Offers as of the Original Early Consent Date (2)
037411 AJ4	7.70% Notes due 2026 (the “March 2026 Notes”)	$78,588,000		$12,488,000		_		15.89%
037411 AK1	7.95% Notes due 2026 (the “April 2026 Notes”)	$132,118,000		$16,965,000		_		12.84%
037411 BJ3	4.875% Notes due 2027 (the “2027 Notes”)	$107,724,000		$36,977,000		_		34.33%
037411 BE4	4.375% Notes due 2028 (the “2028 Notes”)	$324,715,000		$166,154,000		_		51.17%
03746AAA8	7.75% Notes due December 15, 2029 (the “2029 Notes”)	$235,407,000		$43,611,000		_		18.53%
037411 BF1	4.250% Notes due 2030 (the “2030 Notes”)	$515,917,000		$229,514,000		_		44.49%
037411 AR6	6.000% Notes due 2037 (the “2037 Notes”)	$443,223,000		$50,888,000		$21,857,000		16.41%
037411 AW5	5.100% Notes due 2040 (the “2040 Notes”)	$1,332,639,000		$423,171,000		$483,828,000		68.06%
037411 AY1	5.250% Notes due 2042 (the “2042 Notes”)	$399,131,000		$39,081,000		$63,091,000		25.60%
037411 BA2	4.750% Notes due 2043 (the “2043 Notes”)	$427,662,000		$35,516,000		$145,876,000		42.41%
037411 BC8	4.250% Notes due 2044 (the “2044 Notes”)	$210,863,000		$27,396,000		$38,864,000		31.42%
037411 AM7	7.375% Debentures due 2047 (the “2047 Debentures”)	$150,000,000		$27,880,000		_		18.59%
037411 BG9	5.350% Notes due 2049 (the “2049 Notes”)	$386,754,000		$278,320,000		_		71.96%
037411 AL9	7.625% Debentures due 2096 (the “2096 Debentures”)	$39,170,000		$2,860,000		_		7.30%

___________________

(1)	The Maximum Purchase Amount is $1,000,000,000. The 2040 Series Cap limits the aggregate principal amount of the 2040 Notes that may be purchased in the Tender Offers to $700,000,000. The 2042 Series Cap limits the aggregate principal amount of the 2042 Notes that may be purchased in the Tender Offers to $125,000,000. The 2043 Series Cap limits the aggregate principal amount of the 2043 Notes that may be purchased in the Tender Offers to $125,000,000. The 2044 Series Cap limits the aggregate principal amount of the 2044 Notes that may be purchased in the Tender Offers to $50,000,000. The 2037 Series Cap limits the aggregate principal amount of the 2037 Notes that may be purchased in the Tender Offers to the Maximum Purchase Amount less the aggregate principal amount of the 2040 Notes, the 2042 Notes, the 2043 Notes, and the 2044 Notes accepted for purchase in the Tender Offers, provided that the Series Cap for the 2037 Notes will not exceed $50,000,000.
(2)	The requisite consent required with respect to the 2027 Notes, the 2028 Notes, the 2030 Notes, and the 2049 Notes is at least a majority in aggregate principal amount outstanding, and the requisite consent required with respect to the rest of the Apache Notes is at least 66⅔% in aggregate principal amount outstanding (collectively, the “Requisite Consents”). As a result of APA’s waiver of the condition for the receipt of the Requisite Consents for those Offers pursuant to which such condition was not met as of the Original Early Consent Date, such Offers are not conditioned upon receipt of the Requisite Consents.

The Requisite Consents have been received with respect to the 2028 Notes, the 2040 Notes, and the 2049 Notes. In connection therewith, as well as following receipt of any other applicable Requisite Consents with respect to Apache Notes, on the Settlement Date Apache and the trustee under the applicable Apache Indenture will execute a supplemental indenture setting forth the Proposed Amendments, and such supplemental indenture will become effective upon its execution and delivery. As a result of APA’s waiver of the condition for the receipt of the Requisite Consents for those Offers pursuant to which such condition was not met as of the Original Early Consent Date, such Offers are not conditioned upon receipt of the Requisite Consents.

For each $1,000 principal amount of Apache Notes that is validly tendered in the Exchange Offers prior to the Extended Early Consent Date, Eligible Holders will be eligible to receive the Exchange Total Consideration, which consists of $970 principal amount of APA Notes of the applicable series and $1.00 in cash (the “Exchange Consideration”) and $30 principal amount of APA Notes of the applicable series. In exchange for each $1,000 principal amount of Apache Notes that is validly tendered after the Extended Early Consent Date but prior to the Expiration Time, Eligible Holders will be eligible to receive only the Exchange Consideration.

For each $1,000 principal amount of Apache Tender Notes that is validly tendered in the Tender Offers prior to the Extended Early Consent Date, Eligible Holders will be eligible to receive the Tender Total Consideration, which will be determined by reference to a fixed spread specified for such series of Apache Tender Notes over the yield based on the bid-side price of the applicable U.S. Treasury Security, as described in the Offering Memorandum, and includes $30 in cash (the “Tender Early Participation Premium”). In exchange for each $1,000 principal amount of Apache Tender Notes that is validly tendered after the Extended Early Consent Date but prior to the Expiration Time, Eligible Holders will be eligible to receive only the Tender Total Consideration less the Tender Early Participation Premium.

The Tender Total Consideration will be calculated by the Lead Dealer Managers at 10:00 a.m., New York City time, on December 23, 2024.

All payments for Apache Tender Notes purchased in connection with the Extended Early Consent Date will also include accrued and unpaid interest on the principal amount of Apache Tender Notes tendered and accepted for purchase from the last interest payment date applicable to the relevant series of Apache Tender Notes up to, but not including, the Settlement Date.

Any Apache Tender Notes validly tendered prior to the Expiration Time that are not accepted for purchase in the Tender Offers because the applicable Series Cap or the Maximum Purchase Amount is exceeded will be exchanged for APA Notes in the Exchange Offers and such holders will receive the Exchange Total Consideration or the Exchange Consideration, as applicable. APA reserves the right, but is under no obligation, to increase, decrease or eliminate any Series Cap and/or the Maximum Purchase Amount at any time, subject to applicable law.

Apache Notes that have been validly tendered and are accepted in the Offers will be purchased or exchanged (as applicable), retired and cancelled by APA on the Settlement Date.

BofA Securities, Inc., HSBC Securities (USA) Inc., Mizuho Securities USA LLC and RBC Capital Markets, LLC are acting as Lead Dealer Managers, Barclays Capital Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., PNC Capital Markets LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC, Truist Securities, Inc., Wells Fargo Securities, LLC, Capital One Securities, Inc., Regions Securities LLC, and Zions Direct, Inc. are acting as Dealer Managers and D.F. King & Co., Inc. is acting as the Tender Agent and Information Agent for the Offers and the Consent Solicitations. Requests for documents may be directed to D.F. King & Co., Inc., for banks and brokers, collect at (212) 269-5550, for all others, toll-free at (866) 416-0576, at apache@dfking.com or may be downloaded at www.dfking.com/apache. Questions regarding the Offers and the Consent Solicitations may be directed to BofA Securities, Inc. collect at (980) 387-3907 or toll-free at (888) 292-0070, HSBC Securities (USA) Inc. collect at (212) 525-5552 or toll-free at (888) 292-0070, Mizuho Securities USA LLC collect at (212) 205-7741 or toll-free at (866) 271-7403 or RBC Capital Markets, LLC collect at (212) 618-7843 or toll-free at (877) 381-2099.

The Offers and the Consent Solicitations are being made upon the terms and subject to the conditions set forth in the Offering Memorandum. APA may withdraw, amend, or, if a condition to an Offer is not satisfied or, where permitted, waived, terminate the Offers and the Consent Solicitations, subject to applicable law.

The consummation of the Offers and the Consent Solicitations is subject to, and conditional upon, the satisfaction or, where permitted, waiver of the conditions discussed in the Offering Memorandum, including, among other things, with respect to the Tender Offers, the Financing Condition and the operation of the Series Caps and the Maximum Purchase Amount.

This press release shall not constitute an offer to sell, or a solicitation of an offer to buy, any of the securities described herein, including in connection with the Financing Condition, and is also not a solicitation of the related consents. The Offers and the Consent Solicitations are not being made in any state or jurisdiction in which such Offers and Consent Solicitations would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. None of APA, Apache, the Dealer Managers, or the Tender Agent and Information Agent is making any recommendation as to whether holders of any series of Apache Notes should exchange their Apache Notes in the Exchange Offers, tender their Apache Tender Notes in the Tender Offers or deliver consents to the Proposed Amendments and the applicable series of Apache Notes in the Consent Solicitations. Holders are urged to evaluate carefully all information in the Offering Memorandum, including the documents incorporated by reference therein, consult their investment, accounting, legal and tax advisors and make their own decisions as to whether to participate in the Offers and the Consent Solicitations. The Offers and the Consent Solicitations may be made only pursuant to the terms of the Offering Memorandum and the other related materials.

About APA and Apache

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.

Forward-Looking Statements

This 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. All of the forward-looking statements are qualified in their entirety by reference to the factors discussed under “Risk Factors” in the Offering Memorandum and under “Forward-Looking Statements and Risk” and “Risk Factors” in APA’s Annual Report on Form 10-K for the year ended December 31, 2023, and in its Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2024, June 30, 2024, and September 30, 2024 (each of which is incorporated by reference in the Offering Memorandum) and similar sections in any subsequent filings, which describe risks and factors that could cause results to differ materially from those projected in those forward-looking statements. 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
Investor:	(281) 302-2286	Gary Clark
Media:	(713) 296-7276	Alexandra Franceschi
Website:	www.apacorp.com

APA-F

FAQ

What is the maximum purchase amount in APA's tender offers?

APA's tender offers have a maximum purchase amount of $1,000,000,000 aggregate principal amount of Apache Tender Notes.

When is the new expiration date for APA's exchange and tender offers?

The offers will expire at 5:00 p.m., New York City time, on January 7, 2025, with settlement expected on January 10, 2025.

What is the Exchange Total Consideration offered by APA for each $1,000 of Apache Notes?

For each $1,000 of Apache Notes tendered before the Extended Early Consent Date, eligible holders will receive $970 principal amount of APA Notes, $1.00 in cash, and an additional $30 principal amount of APA Notes.

Which Apache note series showed the highest participation rate in APA's offers?

The 2049 Notes showed the highest participation rate at 71.96%, followed by the 2040 Notes at 68.06% of aggregate principal amount outstanding.

How will Apache guarantee the new APA Notes?

Apache will guarantee the APA Notes on terms similar to APA's 2022 syndicated credit facilities, effective until the aggregate principal amount of indebtedness under senior notes and debentures is less than $1,000,000,000.