APA Corp Completes $4.5B Callon Petroleum Asset Acquisition
Ticker: APA · Form: 8-K · Filed: Apr 1, 2024 · CIK: 1841666
Sentiment: bullish
Topics: acquisition, oil-and-gas, debt-financing, permian-basin
Related Tickers: CPE
TL;DR
APA just bought Callon's Permian assets for $4.5B, expanding its footprint in a major oil play.
AI Summary
APA Corp. announced on April 1, 2024, the completion of its acquisition of certain oil and gas assets from Callon Petroleum Company for approximately $4.5 billion. This transaction is expected to significantly expand APA's presence in the Permian Basin. The company also entered into a new credit agreement and issued new senior notes to finance a portion of the acquisition.
Why It Matters
This acquisition significantly bolsters APA Corp's position in the Permian Basin, a key oil-producing region, potentially leading to increased production and profitability.
Risk Assessment
Risk Level: medium — The acquisition involves significant debt financing and integration risks, and the success of the combined assets is subject to volatile commodity prices.
Key Numbers
- $4.5B — Acquisition Value (Total consideration paid for Callon Petroleum's assets.)
Key Players & Entities
- APA Corp (company) — Acquiring company
- Callon Petroleum Company (company) — Target company
- $4.5 billion (dollar_amount) — Acquisition price
- April 1, 2024 (date) — Completion date of acquisition
- Permian Basin (location) — Geographic focus of acquisition
FAQ
What specific assets were acquired from Callon Petroleum?
The filing indicates the acquisition of 'certain oil and gas assets' from Callon Petroleum, but does not detail the specific properties.
How was the $4.5 billion acquisition financed?
The acquisition was financed through a combination of cash on hand, proceeds from the issuance of new senior notes, and borrowings under a new credit agreement.
What is the expected impact of this acquisition on APA Corp's production?
While not quantified in this specific filing, the acquisition is expected to significantly expand APA's presence in the Permian Basin, implying an increase in production.
When was the acquisition officially completed?
The acquisition was completed on April 1, 2024.
Does this filing include financial statements related to the acquired assets?
The filing lists 'Financial Statements and Exhibits' as an item, suggesting that related financial information may be included or will be filed subsequently.
Filing Stats: 2,438 words · 10 min read · ~8 pages · Grade level 12.1 · Accepted 2024-04-01 17:01:06
Key Financial Figures
- $0.625 — nge on which registered Common Stock, $0.625 par value APA Nasdaq Global Select
- $88 — ock") at an exercise price per share of $88.15, subject to certain customary adjust
- $1.5 billion — Agreement"). APA borrowed an aggregate $1.5 billion in senior unsecured term loans that mat
- $2.0 billion — Credit Agreement committed an aggregate $2.0 billion for senior unsecured delayed-draw term
- $500 million — osings (the "3-Year Tranche Loans") and $500 million was for term loans that would mature 36
- $23.9 million — and Callon's 2030 Notes was reduced to $23.9 million. Given the aggregate principal balance
Filing Documents
- d47791d8k.htm (8-K) — 44KB
- d47791dex41.htm (EX-4.1) — 264KB
- d47791dex991.htm (EX-99.1) — 9KB
- g47791dsp1.jpg (GRAPHIC) — 8KB
- 0001193125-24-083563.txt ( ) — 514KB
- apa-20240401.xsd (EX-101.SCH) — 3KB
- apa-20240401_lab.xml (EX-101.LAB) — 18KB
- apa-20240401_pre.xml (EX-101.PRE) — 11KB
- d47791d8k_htm.xml (XML) — 4KB
Financial Statements and Exhibits
Financial Statements and Exhibits. (a) Financial Statements The financial statements of Callon required by Item 9.01(a) of Form 8-K will be filed by amendment to this Current Report within 71 calendar days of the date on which this report is required to be filed. (b) Pro-Forma Financial Information The pro forma financial information required by Item 9.01(b) of Form 8-K will be filed by amendment to this Current Report within 71 calendar days of the date on which this report is required to be filed. (d) Exhibits . Exhibit No. Description of Exhibit 2.1* Agreement and Plan of Merger, dated as of January 3, 2024, by and among APA Corporation, Astro Comet Merger Sub Corp., and Callon Petroleum Company (incorporated by reference to Exhibit 2.1 to Registrant's Current Report on Form 8-K filed January 4, 2024, SEC File No. 001-40144). 4.1 Amended and Restated Warrant Agreement, dated April 1, 2024, by and among APA Corporation, Equiniti Trust Company, LLC, and, solely for purposes of certain provisions specified therein, Callon Petroleum Company. 10.1 Credit Agreement, dated as of January 30, 2024, among APA Corporation, the lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and the other agents party thereto (incorporated by reference to Exhibit 10.1 to Registrant's Current Report on Form 8-K filed January 30, 2024, SEC File No. 001-40144). 99.1 Press release, dated April 1, 2024. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). * Schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K.
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. APA CORPORATION /s/ Stephen J. Riney Stephen J. Riney President and Chief Financial Officer April 1, 2024