APA Corp. is exploring the sale of oil and gas drilling properties spread across parts of the Permian basin of Texas and New Mexico, in a deal that could be valued at about $1 billion, people familiar with the matter told Reuters.
APA, which owns the properties through its Apache subsidiary, is working with investment bankers at RBC Richardson Barr and Truist Securities on the sale process, the sources said, requesting anonymity as the discussions are confidential.
APA's move to offload the drilling sites comes as the Houston-based company looks to revamp its operations to focus on its shale operations, while attempting to reduce its $6.7-billion debt pile in part through asset sales.
The drilling assets are in different sub-sections of the Permian Basin, namely the Northwest Shelf, the Northern Shelf and the Central Basin Platform in New Mexico and Texas. The sites produce more than 22,000 boe/d combined, of which roughly 60% is oil, the sources said.
An Apache spokesperson said the company actively manages its portfolio, but declined to comment on any specific transactions.
"You've seen us do multiple deals recently, including the Callon acquisition this year, and targeted divestments of non-core properties," said Patrick Cassidy, director of corporate communications for Apache.
RBC and Truist declined comment.
The U.S. oil and gas industry is in the midst of a dealmaking boom, as large energy producers have splurged on acquisitions to gain scale and snap up prime drilling sites.
APA has said it wants to pay down the $2 billion of debt that it assumed as part of its acquisition of Callon Petroleum within the next three years. Earlier this year, APA sold some non-core assets in the Permian and Eagle Ford basins for nearly $700 million.
Recommended Reading
Utica Oil’s Infinity IPO Values its Play at $48,000 per Boe/d
2025-01-30 - Private-equity-backed Infinity Natural Resources’ IPO pricing on Jan. 30 gives a first look into market valuation for Ohio’s new tight-oil Utica play. Public trading is to begin the morning of Jan. 31.
Artificial Lift Firm Flowco’s Stock Surges 23% in First-Day Trading
2025-01-22 - Shares for artificial lift specialist Flowco Holdings spiked 23% in their first day of trading. Flowco CEO Joe Bob Edwards told Hart Energy that the durability of artificial lift and production optimization stands out in the OFS space.
Utica Liftoff: Infinity Natural Resources’ Shares Jump 10% in IPO
2025-01-31 - Infinity Natural Resources CEO Zack Arnold told Hart Energy the newly IPO’ed company will stick with Ohio oil, Marcellus Shale gas.
Trump Nominates E&P Advocate Sgamma to Head Bureau of Land Management
2025-02-12 - If confirmed by the Senate, Kathleen Sgamma, president of the Western Energy Alliance, would oversee management of approximately 245 million acres of surface lands.
Utica’s Encino Adds Former Marathon Director to Board
2024-12-16 - Brent J. Smolik, who most recently served on Marathon Oil’s board until its merger with ConocoPhillips, will join Encino Acquisition Partners as a director.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.