APA Announces over $700 Million in Asset Sales from Two Transactions for Non-core Texas Properties
May 20 2024 - 4:15PM
APA Corporation (Nasdaq: APA) announced today the sale of non-core
producing properties by Apache Corporation and certain of its
subsidiaries in two separate transactions with aggregate proceeds
of more than $700 million, prior to customary closing adjustments.
Combined, the properties represent estimated net production in the
first-quarter 2024 of 13,000 barrels of oil equivalent per day
(Mboe/d), of which just over one-third is oil. Proceeds from these
asset sales will be used primarily to reduce nearer-term
borrowings. Closing for both sales is expected early in the
third-quarter 2024.
“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 monetize non-core assets at attractive prices,”
said John J. Christmann IV, chief executive officer of APA
Corporation.
Midland Basin Minerals
Apache Corporation and its subsidiaries have agreed to sell
nearly 24,000 net royalty acres across several counties in the
Midland Basin. These mineral and royalty interests were primarily
non-operated properties that produced approximately 2.0 Mboe/d net
to Apache during the first quarter 2024. The effective date for the
sale is April 1, 2024. Barclays served as the financial advisor for
this transaction.
East Texas Austin Chalk / Eagle Ford
Apache Corporation and its subsidiaries have agreed to sell
237,000 net acres in the East Texas Austin Chalk and Eagle Ford
plays with an effective date of Jan. 1, 2024. Net production during
the first quarter 2024 was approximately 11 Mboe/d. TD Securities
was the financial advisor to the company for this transaction.
About APA
APA Corporation owns consolidated subsidiaries that explore for
and produce oil and natural gas in the United States, Egypt and the
United Kingdom and that explore for oil and natural gas offshore
Suriname and elsewhere. APA posts announcements, operational
updates, investor information and press releases on its website,
www.apacorp.com.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Forward-looking
statements can be identified by words such as “anticipates,”
“intends,” “plans,” “seeks,” “believes,” “continues,” “could,”
“estimates,” “expects,” “guidance,” “may,” “might,” “outlook,”
“possibly,” “potential,” “projects,” “prospects,” “should,” “will,”
“would,” and similar references to future periods, but the absence
of these words does not mean that a statement is not
forward-looking. These statements include, but are not limited to,
statements about future plans, expectations, and objectives for
operations, including statements about our capital plans, drilling
plans, production expectations, asset sales, and monetizations.
While forward-looking statements are based on assumptions and
analyses made by us that we believe to be reasonable under the
circumstances, whether actual results and developments will meet
our expectations and predictions depend on a number of risks and
uncertainties which could cause our actual results, performance,
and financial condition to differ materially from our expectations.
See “Risk Factors” in APA’s Form 10-K for the year ended December
31, 2023, and in our quarterly reports on Form 10-Q, filed with the
Securities and Exchange Commission for a discussion of risk factors
that affect our business. Any forward-looking statement made in
this news release speaks only as of the date on which it is made.
Factors or events that could cause our actual results to differ may
emerge from time to time, and it is not possible for us to predict
all of them. APA and its subsidiaries undertake no obligation to
publicly update any forward-looking statement, whether as a result
of new information, future development or otherwise, except as may
be required by law.
Contacts |
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Investors: (281) 302-2286 |
Gary Clark |
Media: (713) 296-6100 |
Patrick Cassidy |
(713) 296-7276 |
Alexandra Franceschi |
Website: www.apacorp.com |
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