Nissa Darbonne, executive editor-at-large, Hart Energy: Hi, thank you for joining us. I'm Nissa Darbonne, executive editor-at-large for Hart Energy. We're visiting with John Christmann. John is CEO of Apache Corp. John just spoke at SUPER DUG 2024 here in Fort Worth. John, first, thank you for presenting. Appreciate it. Enjoyed it very much.

You just closed your Callon [Petroleum Co.] deal. What are you thinking of in terms of post-closing portfolio rationalization and high grading?

John Christmann, CEO, Apache Corp.: I mean, I think today what Callon does is it brings more balance in our Permian, adds to our Delaware, and we had a large presence in the Midland, so it helps us there. Post this deal, we're now 75% Permian from a company perspective, and 75% of our capital is going into the Permian. So we've been pretty clear that there are other assets that are non-core that we would be looking at to move relatively quickly, as long as the value's there to make progress on the near-term debt on the Callon side.

ND: And also staying with Callon in southeastern Dawson County, Callon was in this, well, technically still is, in this sweet spot. Very prolific oil production. I don't recall, I think they are—that is Dean, production from the Dean. Is that an area you think you'll like to stay in, or?

JC: I mean, obviously places where Callon was drilling good wells, we'll look to continue those and hopefully build on the performance there. So obviously there's a lot we like about the Callon inventory and we'll be looking to put our stamp on it, but see what we can do to build on the success that we’re having in some areas. For sure.

ND: Okay. Also too, operators pretty much in all basins are continuing to really push the boundaries of what's possible. Certainly have not quit there.

In the Permian in particular, we have one operator, for example, that's taken 84 short laterals and decided to go ahead and do 42 horseshoes. There's another operator in Culberson County that's taken 12 sections and turning it into a 54 well DSU, and technically that's kind of just for starters, because there are more landing zones in there. This is just Wolfcamp and Harkey. Then also too, operators are continuing to look at four- and five-mile laterals. In terms of where Apache is pushing the frontier, if you will, in the Permian Basin.

JC: Yeah, I mean I think, Nissa, what you point out there is just the benefits of longer laterals and more rock exposure. And so as you look at the, here we are now a decade plus into the development of both the Midland and Delaware. You're limited by land, and so at that point, if you've got a section and you need two miles to make the laterals really more efficient, then yes, industry's going to get real creative on how you get two miles of exposure in those sections. So I think you'll see more of this happening as time moves forward, and obviously as we get on the technology front, you'll see areas where you can continue to stretch out the optimum lateral length.

Delaware is a little different animal because you start to get into limitations on how much fluid you can produce versus in the Midland Basin in the Wolfcamp. So you've got to factor all those things in, but I think you'll see more and more creative geometries as you're trying to get well bores in landing zones that are very productive, where you can get more exposure to length and so forth, and design your fracs to develop as much rock efficiently for as lowest amount of capital as possible.

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ND: Wonderful. Thank you, John.

JC: You bet. Thank you.

ND: Thank you very much, and thank you for joining us. Stay here at hartenergy.com for more actionable intelligence.

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