APA agrees to $950 Million asset sale in the Permian Basin

APA agreed to the sale of non-core producing properties in the Permian Basin to an undisclosed buyer for $950 million, prior to customary closing adjustments. The properties are located in the Central Basin Platform, Texas and New Mexico Shelf and Northwest Shelf and currently represent estimated net production of 21,000 barrels of oil equivalent per day (boepd), of which approximately 57 percent is oil.

Proceeds from this sale will be used primarily to reduce debt. The effective date of the transaction is July 1, 2024, and is expected to close in Q4 of 2024.

“Our remaining Permian position has scale and balance in the unconventional Midland and Delaware Basins,” said John J. Christmann IV, CEO of APA. “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 boepd in 2024.”