APA Corporation Closes Two Transactions; Receives $1 Billion of Proceeds
15 March 2022 - 12:26AM
APA Corporation (Nasdaq: APA) today announced the closing of two
transactions, generating net proceeds of approximately $1 billion.
On March 7, subsidiaries of the company completed the sale of a
Delaware Basin mineral package to an undisclosed buyer for
approximately $805 million, subject to post-closing adjustments.
The divested assets primarily comprise non-operated properties
across west Texas and southeast New Mexico, with estimated
production of approximately 7,000 barrels of oil equivalent per
day.
In a second transaction, on March 11, a subsidiary of APA
completed the sale of 4 million shares of Kinetik (NASDAQ: KNTK)
Class A common stock for net proceeds of $224 million. The
transaction follows the combination of Altus Midstream and BCP
Raptor Holdco LP that formed Kinetik and was completed in late
February. Within the next 24 months, Apache will invest a minimum
of $100 million for new well drilling and completion activity at
the Alpine High play in the Delaware Basin, where Kinetik has
exclusive gas and NGL gathering and processing rights.
“Completion of these transactions reflects the ongoing
streamlining of our portfolio. We remain committed to returning
Free Cash Flow to shareholders and continuing to strengthen the
balance sheet. As such, we plan to direct a portion of these sales
proceeds toward debt reduction,” said John J. Christmann IV, CEO
and president of APA Corporation.
Steve Riney, CFO and executive vice president, noted, “With
first-quarter 2022 results, we will begin deconsolidating Altus
Midstream contributions, thereby deleveraging APA’s balance sheet,
simplifying our financial reporting, and enhancing comparability
with pure upstream peers. As of March 31, 2022, among other items,
APA’s balance sheet will no longer reflect the $657 million in
Altus long-term debt and $712 million associated with Altus’
preferred equity previously consolidated at year-end 2021.”
About APA
APA Corporation owns consolidated subsidiaries that explore for
and produce oil and natural gas in the United States, Egypt and the
United Kingdom and that explore for oil and natural gas offshore
Suriname. APA posts announcements, operational updates, investor
information and press releases on its website, www.apacorp.com.
Additional details regarding Suriname, ESG performance and other
investor-related topics are posted at investor.apacorp.com.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Forward-looking
statements can be identified by words such as “anticipates,”
“intends,” “plans,” “seeks,” “believes,” “continues,” “could,”
“estimates,” “expects,” “guidance,” “may,” “might,” “outlook,”
“possibly,” “potential,” “projects,” “prospects,” “should,” “will,”
“would,” and similar references to future periods, but the absence
of these words does not mean that a statement is not
forward-looking. These statements include, but are not limited to,
statements about future plans, expectations, and objectives for
operations, including statements about our capital plans, drilling
plans, production expectations, asset sales, and monetizations.
While forward-looking statements are based on assumptions and
analyses made by us that we believe to be reasonable under the
circumstances, whether actual results and developments will meet
our expectations and predictions depend on a number of risks and
uncertainties which could cause our actual results, performance,
and financial condition to differ materially from our expectations.
See “Risk Factors” in our Form 10-K for the year ended December 31,
2021, filed with the Securities and Exchange Commission, and in our
quarterly reports on Form 10-Q for a discussion of risk factors
that affect our business. Any forward-looking statement made in
this news release speaks only as of the date on which it is made.
Factors or events that could cause our actual results to differ may
emerge from time to time, and it is not possible for us to predict
all of them. APA and its subsidiaries undertake no obligation to
publicly update any forward-looking statement, whether as a result
of new information, future development or otherwise, except as may
be required by law.
Contacts |
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Investor: |
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(281) 302-2286 |
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Gary Clark |
Media: |
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(713) 296-7276 |
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Alexandra Franceschi |
Website: |
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www.apacorp.com |
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