APA Mulls $1B Permian Assets Sale, say sources

APA Corp is exploring the sale of oil and gas drilling properties spread across parts of the Permian basin of Texas and New Mexico, in a deal that could be valued at about $1 billion, people familiar with the matter told Reuters.

APA, which owns the properties through its Apache subsidiary, is working with investment bankers at RBC Richardson Barr and Truist Securities on the sale process, the sources said, requesting anonymity as the discussions are confidential.

APA's move to offload the drilling sites comes as the Houston-based company looks to revamp its operations to focus on its shale operations, while attempting to reduce its $6.7-billion debt pile in part through asset sales.

The drilling assets are in different sub-sections of the Permian Basin, namely the Northwest Shelf, the Northern Shelf, and the Central Basin Platform in New Mexico and Texas. The sites produce more than 22,000 barrels of oil equivalent per day combined, of which roughly 60% is oil, the sources said.

(Reuters)