Published on 3 Apr 2024 on Zacks via Yahoo Finance

APA Boosts Production With Callon Petroleum Acquisition

APA Corporation APA has completed the acquisition of Callon Petroleum Company (CPE). Earlier this year, in January, APA announced the acquisition of Callon in an all-stock deal valued at $4.5 billion.

The acquisition should reportedly increase APA’s daily production to approximately 500,000 barrels of oil equivalent (BOE), approximately two-thirds of which will be sourced from the Permian Basin. APA has stated that the acquisition was made at a compelling valuation and Callon’s assets will provide additional scale to its Delaware position and balance its overall asset base in the Permian Basin. CPE’s assets include nearly 120,000 net acres in the Delaware Basin and 25,000 net acres in the Midland Basin.

APA’s management believes that the buyout will generate shareholder value by driving improved capital productivity and well performance. Additionally, it is expected to realize significant cost synergies for APA. The company looks forward to leveraging its technical expertise and work processes across the Callon acreage to generate substantial returns for shareholders.