APA, a US-based oil producer, is exploring the sale of its oil and gas drilling properties in the Permian Basin of Texas and New Mexico, reported Reuters, citing sources.
The deal could be valued at around $1bn, according to the sources.
APA’s properties, owned through its Apache subsidiary, are being marketed with the support of RBC Richardson Barr and Truist Securities.
The potential sale is part of the company’s strategy to focus on its shale operations and reduce its debt burden, which stands at $6.7bn.
The drilling assets, located in various subsections of the Permian Basin, collectively produce over 22,000 barrels of oil equivalent per day (boepd), with approximately 60% being oil.
Apache director of corporate communications Patrick Cassidy stated: “You have seen us do multiple deals recently, including the Callon acquisition this year, and targeted divestments of non-core properties.”
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By GlobalDataHowever, the company declined to comment on this specific transaction.
The US oil and gas industry is experiencing a surge in dealmaking, with large energy producers acquiring assets to expand their operations.
APA aims to pay down the $2bn debt incurred from its acquisition of Callon Petroleum within the next three years.
As a part of this plan, APA sold some non-core assets in the Permian and Eagle Ford Basins for nearly $700m earlier this year.
These deals included the divestment of assets in the Midland Basin and East Texas by Apache and certain subsidiaries.
In the Midland Basin, Apache agreed to sell close to 24,000 net royalty acres, which produced approximately 2,000boepd net to Apache during the first quarter of 2024.
Additionally, the company sold 237,000 net acres in the East Texas Austin Chalk and Eagle Ford plays, with net production of about 11,000boepd during the same period. TD Securities was the financial advisor for these transactions.
