APA Completes $4.5 Billion Permian Deal, Acquiring Callon Petroleum
APA Corporation is set to acquire Permian oil and gas producer Callon Petroleum Company in an all-stock transaction valued at approximately $4.5 billion, including Callon’s net debt. This move adds further momentum to the ongoing merger and acquisition activity in the U.S. shale sector.
Callon’s assets, especially in the Delaware Basin where it holds nearly 120,000 acres, will enhance APA’s operations across the Permian Basin. On a pro forma basis, the combined company’s total production is expected to exceed 500,000 barrels of oil equivalent per day, with an enterprise value exceeding $21 billion.
The acquisition of Callon Petroleum Company by APA Corporation has received unanimous approval from the Boards of Directors of both companies. The transaction is expected to close in the second quarter of 2024, subject to customary closing conditions, regulatory approval, and the endorsement of shareholders from both APA and Callon.
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Following the merger, APA’s executive management team will lead the combined company, and the headquarters will remain in Houston, Texas. This acquisition is part of a series of recent deals in the U.S. oil industry, with other notable transactions including Exxon’s purchase of Pioneer Natural Resources and Chevron’s acquisition of Hess Corporation.
\The trend of consolidation in the oil and gas sector is anticipated to persist as companies seek to increase their inventory for production, particularly in the Permian Basin.
