Houston-based APA Corp. said last week its recent agreements to divest non-core assets in Permian Basin and Eagle Ford closed earlier than expected and for less than the $700 million expected. Closing had been expected in third quarter for 24,000 net royalty acres in several counties in Midland Basin (2,000 boed net in 1Q) and 237,000 net acres in Eagle Ford and Austin Chalk in east Texas (11,000 boed in 1Q). APA said net proceeds from sales of the assets were about $660 million to be used “primarily to reduce nearer-term borrowings” (it purchased Callon Petroleum earlier this year).
John J. Christmann IV, CEO, said in May when the sales were announced, “We will continue to look for opportunities to exit assets that are unlikely to compete for capital within our portfolio or to monetize non-core assets at attractive prices.”