Houston-based APA Corp. said in its second quarter earnings release Aug. 3 it acquired property in Delaware Basin in Loving and Reeves counties in Texas for $505 million. The acquisition is located near APA’s exiting operations and is referred to as a “tuck-in acquisition” in the investor presentation in which APA revealed that its 2Q profit nearly tripled. APA did not announce the seller, but Reuters said APA is buying assets from Fort Worth-based Titus Oil and Gas.
APA and its subsidiary Apache Corp. said the assets include producing wells, wells in the process of drilling and completion, and an inventory of undrilled locations. They said, “The acquisition also brings immediate access to a high-quality drilling rig and experienced crew for ongoing development.” Production is expected to average 12,000 to 14,000 boed for the remaining months of 2022. Total cost at closing is $555 million. Recently Titus disclosed an agreement to sell Delaware Basin assets in New Mexico to Earthstone Energy for $627 million.