From Nasdaq: 2024-05-21 06:45:00

APA Corporation has sold non-core-producing properties for over $700 million before closing adjustments. The transactions involve properties with an estimated net production of 13,000 Mboe/d in the first quarter of 2024, with one-third being oil. Proceeds will be used to reduce near-term borrowings, enhancing financial flexibility.

One significant transaction includes the sale of nearly 24,000 net royalty acres in the Midland Basin, producing around 2 Mboe/d. Another deal involves the sale of 237,000 net acres in East Texas Austin Chalk / Eagle Ford, with a net production of 11 Mboe/d. Proceeds from these transactions will be utilized to strengthen APA’s balance sheet and realign its focus on high-value core assets.

The sale of non-core assets aligns with APA Corporation’s strategy to optimize its portfolio and concentrate on assets with higher returns. The move is part of a broader industry trend where companies are shedding non-core assets to enhance financial health and operational efficiency.

APA Corporation’s strategic divestitures reflect a shift towards value creation and operational efficiency in the energy sector. The company’s streamlined portfolio is expected to drive greater productivity and profitability in a competitive market environment.

Investors interested in the energy sector may consider better-ranked stocks like Archrock, Inc., SM Energy Company, and Sunoco LP, all offering potential for strong returns. These companies operate in various segments within the energy industry, providing diverse investment opportunities for interested stakeholders.



Read more at Nasdaq: APA Announces Sale of Non-Core Producing Texas Properties