APA Corp., Houston, agreed to sell ‘non-core’ producing properties in the Permian basin to an undisclosed buyer for $950 million.
The properties lie in the Central Basin Platform, Texas and New Mexico Shelf, and Northwest Shelf and currently represent estimated net production of 21,000 boe/d (57% oil), the company said in a release Sept. 10.
"Through multiple transactions completed this year, we have high graded and focused our US asset base. Our remaining Permian position has scale and balance in the unconventional Midland and Delaware basins,” said John J. Christmann IV, APA’s chief executive officer.
"The net impact of our acquisition of Callon Petroleum and the follow-on asset sales is that APA has increased its onshore US 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," he said.
The company agreed earlier this year to acquire Callon Petroleum in a $4.5-billion deal expected to add scale and short-cycle opportunities in the Permian basin and increase the company’s oil mix (OGJ Online, Jan. 16, 2024).
Pro-forma fourth-quarter US production guidance is 307,000 boe/d which is 34% above the company’s fourth-quarter 2023 production.
The deal is expected to close during the fourth-quarter 2024.