Houston-based APA Corp. said Thursday it will acquire Callon Petroleum in an all-stock transaction valued at about $4.5 billion, including Callon’s $1.9 billion in debt.  Callon’s assets provide additional scale to APA across the Permian Basin, most notably in Delaware Basin, where Callon has about 120,000 acres primarily in Reeves, Ward and Winkler counties.  “This transaction is aligned with APA’s overall portfolio strategy and fits all the criteria of our disciplined approach to evaluating external growth opportunities,” John J. Christmann IV, CEO and president of APA, said.  “Callon has built a strong portfolio in the Permian Basin that is complementary to our existing Permian assets and rounds our opportunity set in the Delaware.”

Callon had four rigs running in 3Q in Delaware Basin and one rig running in Midland Basin, where it has about 26,000 acres.  Total company production now exceeds 500,000 boed.  APA expects its oil production in 3Q as a percentage of boe in Permian to increase to 43 percent from 37 percent.  Closing is expected in second quarter 2024.

 

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