HOUSTON - APA Corporation (NASDAQ:APA), an oil and gas exploration and production company, announced the sale of its non-core producing properties in two separate transactions, totaling more than $700 million prior to customary closing adjustments. The divestitures involve properties that collectively contributed approximately 13,000 barrels of oil equivalent per day (Mboe/d) in net production during the first quarter of 2024, with just over one-third being oil.
The company plans to use the proceeds from these sales primarily to reduce its near-term borrowings. Both transactions are expected to close early in the third quarter of 2024. APA Corporation's CEO, John J. Christmann IV, stated that these sales are in line with the company's strategy of actively managing its portfolio and seeking opportunities to exit or monetize non-core assets at attractive prices.
In the Midland Basin, Apache Corporation (NASDAQ:APA) and its subsidiaries have agreed to sell nearly 24,000 net royalty acres across several counties. These mineral and royalty interests, primarily non-operated properties, produced approximately 2.0 Mboe/d net to Apache during the first quarter of 2024. Barclays (LON:BARC) acted as the financial advisor for this transaction.
Moreover, in East Texas, Apache has agreed to sell 237,000 net acres in the Austin Chalk and Eagle Ford (NYSE:F) plays, with production during the first quarter of 2024 at about 11 Mboe/d. TD Securities served as the financial advisor for this deal.
APA Corporation, through its consolidated subsidiaries, engages in the exploration and production of oil and natural gas in the United States, Egypt, and the United Kingdom, with additional exploration activities offshore Suriname and in other areas.
The company cautions that this news release contains forward-looking statements based on assumptions and analyses that are subject to a number of risks and uncertainties. APA and its subsidiaries do not commit to updating any forward-looking statement publicly, except as required by law. The information reported is based on a press release statement.
InvestingPro Insights
APA Corporation's recent strategic divestitures underscore its focus on optimizing its asset portfolio. In light of these developments, key financial metrics and InvestingPro Tips offer insights into the company's current market standing.
With a market capitalization of $11.47 billion and a low P/E ratio of 3.44, APA appears to be valued attractively in the market. The company's commitment to shareholder returns is evident from its track record of maintaining dividend payments for 54 consecutive years, with a current dividend yield of 3.24%.
InvestingPro Tips indicate that APA's stock price has experienced volatility, trading near its 52-week low, which could signal a potential entry point for investors looking for value. The company also trades at a high Price/Book multiple of 4.4, reflecting a premium compared to book value. Despite a revenue decline of 10.65% over the last twelve months as of Q1 2024, APA's gross profit margin remains strong at 71.2%, underscoring efficient operations and cost management.
Investors seeking additional insights can find more InvestingPro Tips for APA Corporation at https://www.investing.com/pro/APA. For those interested in a deeper analysis, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes a total of 8 InvestingPro Tips for APA Corporation.
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