APA buys up acreage in US acquisitions race

WASHINGTON D.C., January 5, 2024 – US oil and gas player APA Corporation has signed an agreement to acquire local competitor Callon Petroleum Company in a deal valued at around USD 4.5 billion, both US E&P companies announced on Thursday.

The all-stock transaction will see APA Corporation take on around 485 square kilometres of concessions on the Delaware basin and drive its production capacity beyond 500,000 boepd.

Under the deal, the buyer’s oil-prone acreage in the Midland and Delaware basins combined will increase by more than 50%.

The combined value of the companies is estimated to be around USD 21 billion.

The deal is expected to close in Q2 2024.

“Callon has built a strong portfolio in the Permian Basin that is complementary to our existing Permian assets and rounds out our opportunity set in the Delaware,” said John J. Christmann IV, CEO and president of APA Corporation.

The move follows several large recent mergers in the US market in 2023, including Occidental Petroleum Corporation agreeing to acquire local competitor CrownRock Minerals for USD 12 billion, Chevron agreeing to acquire Hess International for USD 60 billion and ExxonMobil agreeing to purchase Pioneer Natural Resources for USD 64 billion.

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