APA Corporation has announced the successful completion of its acquisition of Callon Petroleum Company. The transaction received approval from APA and Callon shareholders at special meetings held on March 27, 2024.
John J. Christmann IV, APA’s CEO, expressed satisfaction with the closure of the deal, stating, “We are very pleased to close this transaction as Callon’s assets bring scale to our Delaware position and balance to our overall Permian asset base — all at what we believe is a compelling valuation. We are confident this transaction will create shareholder value, as we expect to drive improved capital productivity and well performance, while realizing significant cost synergies. We look forward to applying our technical expertise and work processes across the Callon acreage to unlock potentially substantial shareholder value.”
With the acquisition finalized, APA’s daily reported production is expected to reach approximately 500,000 barrels of oil equivalent, with approximately two-thirds coming from the Permian Basin. The acquired assets encompass approximately 120,000 net acres in the Delaware Basin and 25,000 net acres in the Midland Basin. Callon’s fourth-quarter production stood at 103,000 BOE per day, comprising 58 percent oil and 80 percent liquids.
As per the terms outlined in the merger agreement, each share of Callon common stock was converted into the right to receive 1.0425 shares of APA common stock, with cash provided in lieu of fractional shares. Consequently, APA issued approximately 70 million shares of common stock related to the transaction. Following the acquisition, Callon stock is no longer listed for trading on the NYSE.
For more information visit www.apacorp.com
