APA Corporation completes $950 million sale of Permian non-core assets
APA Corporation has agreed to sell a package of non-core producing properties in the Permian Basin for $950 million. The move tightens the company’s focus and strengthens its balance sheet by concentrating on a more focused asset base. The assets, largely situated on the Central Basin Platform, produce about 21,000 barrels of oil equivalent per day, with a sizable share of those volumes being oil-weighted.
What the sale means for operations and the balance sheet
Chief Executive Officer John J. Christmann IV said the cash proceeds will be directed first and foremost to paying down debt, in line with the company’s financial priorities. The transaction is effective from an agreed date, and closing is expected later in the year, subject to customary completion steps.
Why narrowing the portfolio matters
Exiting non-core properties allows APA to double down on its highest-value assets and simplify day-to-day operations. That sharper focus supports a durable competitive position in oil and gas. It also links to a broader lift in onshore U.S. production, which has been a key contributor to the company’s overall portfolio performance.
U.S. production capacity continues to build
Through a series of transactions completed this year, APA’s U.S. production capacity has grown to roughly 66,000 barrels of oil equivalent per day in 2024. That step-up reflects a strategy aimed at disciplined growth while continuing to manage liabilities and preserve flexibility.
Outlook and guidance
For the fourth quarter, APA’s production guidance calls for approximately 307,000 barrels of oil equivalent per day—an increase of 34% versus the same period a year ago. The outlook underscores a focus on execution and steady growth, without losing sight of capital discipline.
How APA stacks up
Christmann noted that APA’s targeted acquisition approach, paired with operational strength, leaves the company well positioned relative to similarly sized peers in the region. A streamlined portfolio can do more than lift volumes; it can also improve the efficiency of transport and marketing arrangements that move those barrels to market.
Diverse rocks, diverse regions
Beyond unconventional assets in the Permian, APA’s broader portfolio spans different geologies and geographies. That mix helps the company manage through market swings and keep pursuing new, fit-for-purpose opportunities across its footprint.
Advisors to the deal
RBC Richardson Barr served as lead financial advisor on the sale, with Truist Securities also advising. Bracewell LLP provided legal counsel. Together, their roles reflect the complexity of the transaction and the value of careful financial and legal planning.
About APA Corporation
APA Corporation explores for and produces oil and natural gas across the United States, Egypt, and the United Kingdom. The company’s approach centers on sound operations, disciplined management, and ongoing steps to improve how its assets and teams perform.
Frequently Asked Questions
What did APA sell, and for how much?
APA agreed to sell non-core producing properties in the Permian Basin for $950 million.
What will APA do with the proceeds?
The company plans to use the proceeds primarily to reduce existing debt, consistent with its financial priorities.
How has APA’s U.S. production capacity changed in 2024?
Through various transactions completed this year, U.S. production capacity stands at roughly 66,000 barrels of oil equivalent per day in 2024.
What is the company’s near-term production guidance?
APA’s fourth-quarter guidance is about 307,000 barrels of oil equivalent per day, which represents a 34% increase compared with the prior year period.
Where is APA focusing after the sale?
APA remains focused on higher-value assets, including unconventional positions in the Midland and Delaware Basins within the Permian.
