US oil company APA has announced the sale of non-core producing properties in Texas, generating more than $700m from two separate transactions.
The deals involve the divestment of assets in the Midland Basin and East Texas by its unit Apache and certain subsidiaries.
In the Midland Basin, Apache has agreed to sell nearly 24,000 net royalty acres across several counties.
These mineral and royalty interests, primarily non-operated, produced approximately 2,000boepd net to Apache during Q1 2024.
Barclays acted as the financial advisor for this transaction.
The second transaction involves the sale of 237,000 net acres in the East Texas Austin Chalk and Eagle Ford plays, with net production during Q1 2024 at approximately 11,000boepd.
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By GlobalDataTD Securities served as the financial advisor to Apache for this deal.
The combined properties represent an estimated net production in Q1 2024 of 13,000boepd, with just over one-third being oil.
The proceeds from these asset sales will be primarily used to reduce nearer-term borrowings.
APA CEO John Christmann IV said: “These transactions are consistent with our active management of the portfolio, and we will continue to look for opportunities to exit assets that are unlikely to compete for capital within our portfolio or to monetise non-core assets at attractive prices.”
Both sales are expected to close early in Q3 2024.
In January, APA signed a definitive agreement to acquire Callon Petroleum in an all-stock transaction valued at approximately $4.5bn.
APA anticipates the acquisition to provide additional scale across the Permian Basin, especially in the Delaware Basin where Callon holds nearly 120,000 acres.
Post-acquisition, APA’s combined oil-prone acreage in the Midland and Delaware Basins is expected to increase by more than 50%, boosting its total production to more than 500,000boepd and increasing its enterprise value to more than $21bn.
