Apache Corp.’s headquarters in Houston, Texas; APA and Apache closed a $4.5 billion acquisition of Callon Petroleum, adding scale in West Texas and New Mexico.
APA Corp. closed a $4.5 billion takeover of Callon Petroleum, adding greater scale in the prolific Permian Basin.
APA Corp., and its subsidiary Apache, acquired approximately 145,000 net Permian acres through the acquisition of Callon Petroleum Co.—including 25,000 net acres in the Midland Basin and 120,000 net acres in the Delaware Basin.
Callon’s production averaged 103,000 boe/d during the fourth quarter 2023 (58% oil, 80% liquids).
“We are very pleased to close this transaction as Callon’s assets bring scale to our Delaware position and balance to our overall Permian asset base — all at what we believe is a compelling valuation,” said APA CEO John Christmann IV in an April 1 news release.
After closing the Callon deal, first was announced in January 2024, APA’s daily average production will reach approximately 500,000 boe/d, with around two-thirds of the company’s total volumes coming from the Permian Basin.
“We look forward to applying our technical expertise and work processes across the Callon acreage to unlock potentially substantial shareholder value,” Christmann said.
Alongside announcing closing the Callon deal, APA announced adding Matthew Bob and Anya Weaving as board members on April 1.
Under the terms of the Callon transaction, a representative of Callon was to join APAP’s board. Bob served as an independent director and board chair for Callon Petroleum, and he’s been founder and managing partner of MB Exploration LLC since 1994. APA’s executive management team will continue to lead the combined company, which will remain headquartered in Houston.
“Matthew brings extensive executive and operational experience with U.S. onshore oil and gas companies in addition to his technical expertise,” said Lamar McKay, APA’s nonexecutive board chair, in a seperate April 1 release. “His knowledge of Callon will provide the board with valuable insight and guidance on the newly acquired company assets.”
Weaving most recently served as vice chairman of global natural resources at Bank of America Merrill Lynch.
“Anya’s experience in the oil and gas industry as well as her background advising large cap energy companies will bring additional critical skills to the board,” McKay said. “Her expertise in mergers and acquisitions and other financial transactions will support the board in evaluating future strategic opportunities.”
RELATED: Analysts: APA Takes Callon Off Board as Permian M&A Wave Hits ‘24
Recommended Reading
Freshly Public New Era Touts Net-Zero NatGas Permian Data Centers
2024-12-11 - New Era Helium and Sharon AI have signed a letter of intent for a joint venture to develop and operate a 250-megawatt data center in the Permian Basin.
Paisie: Trump’s Impact on All Things Energy
2024-12-11 - President-elect Donald Trump’s policies are expected to benefit the U.S. oil and gas sector, but also bring economic and geopolitical risks.
US Supreme Court Should Avoid Climate Change Cases, Biden Administration Says
2024-12-11 - The Biden administration is urging the U.S. Supreme Court to reject efforts by oil companies to prevent lawsuits accusing the fossil fuel producers of deceiving the public about climate change.
Marketed: Hess 3-Well Package in Bakken Shale
2024-12-11 - Hess Corp. has retained EnergyNet for the sale of a three-well Bakken Shale package in Mountrail and Ward counties, North Dakota.
Energy Transfer Shows Confidence in NatGas Demand with Pipeline FID
2024-12-11 - Analyst: Energy Transfer’s recent decision to green light the $2.7 billion Hugh Brinson line to Dallas/Fort Worth suggests electric power customers are lining up for Permian Basin gas.
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.