Houston-based APA Corp. said Tuesday it agreed to divest certain non-core producing assets in Permian Basin to an undisclosed buyer for $950 million. The properties in Central Basin platform, Texas and New Mexico shelf, and Northwest shelf represent current net production of about 21,000 boed (57 percent oil). APA said proceeds will be used primarily to reduce debt.
John J. Christmann IV, CEO, said, “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.” APA said production guidance for 4Q is 307,000 boed – 34 percent above 2023Q4 production.
Christmann added, “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 boed in 2024 and continued to add economic unconventional inventory with no material change in net debt levels compared to yearend 2023.” The company’s $4.5 billion acquisition of Callon was announced earlier this year.