Oil producer APA Corp to sell Permian assets for $950 mln

U.S. oil and gas producer APA Corp, said on Tuesday it would sell non-core Permian-based drilling properties to an undisclosed buyer for about $950 million as it looks to cut down its debt pile.

Consolidation in the sector hit a record $51 billion in the first quarter as energy companies rush to expand their oil and gas drilling inventories, especially in the top U.S. shale field, the Permian Basin.

The Houston-based company said that it wanted to pay down $2 billion of debt it took on as part of its acquisition within the next three years.

APA also sold some non-core assets in the Permian and Eagle Ford basins for nearly $700 million earlier this year.

"The company's more focused unconventional Permian asset base and advantageous transport and marketing positions compares favorably with like-sized, pure-play peers in the region," said John Christmann IV, the chief executive officer of APA Corp.

The deal, which is expected to close during the fourth quarter of 2024, involves properties with an estimated net production of 21,000 barrels of oil equivalent per day, of which approximately 57% is oil.

APA estimates that its fourth-quarter production would be around 307,000 boepd after the transaction closes.

Shares of the company were up 0.8% in after-market trading.

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