APA Corp. disclosed a $805 million sale of mineral rights in the Delaware Basin alongside plans for additional pruning to its Permian portfolio.
Based in Houston, the independent E&P company holds a gross acreage position of 4.9 million acres in the Permian Basin primarily located in the Midland Basin, the Central Basin Platform/Northwest Shelf and the Delaware Basin. Last quarter, APA set a $500 million target of noncore U.S. asset sales that the company expected to mainly come out of its Permian Basin portfolio.
APA easily hit the $500 million noncore sales target with the recent agreement to sell a sizable chunk of mineral rights in the Delaware Basin, which the company disclosed in its fourth-quarter earnings announcement on Feb. 21.
“We said we’d sell a minimum of $500 million. Clearly, we’ve met that through the sale,” John J. Christmann IV, APA’s CEO and president, said on a call with analysts the next day, according to a transcript by Seeking Alpha.
Despite his views of meeting and exceeding that goal, Christmann added on the call that “there’s still opportunity out there for some potential additional pruning if we choose to do so.”
“You should anticipate continued noncore Permian asset sales,” he said.
The Delaware Basin mineral rights sales package is expected to close by the end of February, or within the next week, according to Christmann.
Further details about the sale have yet to be disclosed except that about 7,000 boe/d of production is lost due to the Delaware minerals package, noted CFO Stephen Riney on the company’s earnings call on Feb. 22.
Recommended Reading
Oil Prices Up Slightly as US Crude Oil Inventories Fall
2024-07-03 - The U.S. Energy Information Administration reported a 12.2 million draw in the country's crude oil barrels in storage last week.
What's Affecting Oil Prices This Week? (July 22, 2024)
2024-07-22 - While oil traders have been adding to their net long positions in recent weeks, the rate of increase has slowed. Last week, traders of WTI increased their net long positions by only 4.25% by increasing their long positions while decreasing their short positions, while traders of Brent crude decreased their net long positions by increasing their short positions.
Brent Crude Falls $1/bbl on Demand Fears
2024-09-04 - Brent crude oil prices fell to $72.75 on Sept. 4 on fears about demand in the coming months as crude producers offered mixed signals about supply increases.
Oil Settles $1 Down After US Job Data Revised Significantly Lower
2024-08-21 - U.S. employers added far fewer jobs than originally reported in the year through March, the Labor Department said on Aug. 21.
Oil Prices Fall as Investors Take Stock of Biden Exit, Rate Cuts in Focus
2024-07-22 - Oil prices fell on July 22 after Joe Biden announced he would not seek a second term as U.S. president.
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.