APACorp.
is buying
Callon
Petroleum for $4.5 billion in an all-stock deal, adding crucial acreage in the Permian basin of western Texas and New Mexico.
The merger will add about 500,000 barrels of oil equivalent a day to APA’s portfolio and will be “accretive to all key financial metrics,” the company said in a statement Thursday.
APA shares were falling 5.4% in premarket trading to $34.77. Callon Petroleum jumped 5.2% to $35.41.
The purchase follows Occidental’s $12 billion deal for CrownRock—another firm with domestic oil fields—and
Exxon Mobil’s
acquisition of Pioneer last year for its acreage in the Permian basin. The U.S. has ramped up oil output to become the world’s biggest producer, providing some protection from supply disruptions because of geopolitical conflict in the Middle East or Russia.
Oil prices fell back in 2023 after surging the previous year, leading to record profits in the industry.
Write to Brian Swint at [email protected]
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