By APACorp., a leading energy company, has announced its acquisition of Callon Petroleum in an all-stock deal worth $4.5 billion. This strategic move will provide APACorp. with vital acreage in the Permian basin, located in western Texas and New Mexico.
The merger will significantly bolster APA’s portfolio, adding approximately 500,000 barrels of oil equivalent per day. In a statement released on Thursday, the company stated that this acquisition will be “accretive to all key financial metrics.”
In response to the news, APA shares experienced a slight decline of 5.4% in premarket trading, currently standing at $34.77. Conversely, Callon Petroleum saw a 5.2% increase, reaching $35.41.
This recent transaction follows Occidental’s acquisition of CrownRock for $12 billion, as well as Exxon Mobil’s purchase of Pioneer last year, both securing valuable acreage in the Permian basin. The United States’ increased oil output has propelled it to become the world’s largest oil producer, offering some insulation against supply disruptions stemming from geopolitical conflicts in the Middle East or Russia.
While oil prices experienced a decline in 2023 after a substantial surge the previous year, the industry still achieved record profits.
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