(APA Corp., 20.May.2024) — APA Corporation (Nasdaq: APA) announced 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 $700mn, 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 (boe/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 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 2,000 boe/d net to Apache during the first quarter 2024. The effective date for the sale is 1 Apr. 2024. Barclays served as the financial advisor for this transaction.
East Texas Austin Chalk / Eagle Ford
Apache 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 1 Jan. 2024. Net production during the first quarter 2024 was approximately 11,000 boe/d. TD Securities was the financial advisor to the company for this transaction.
____________________
