APA Announces over $700 Million in Asset Sales from Two Transactions for Non-core Texas Properties
HOUSTON, May 20, 2024 (GLOBE NEWSWIRE) -- 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 | |
| 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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