APA Corp. to Acquire Callon Petroleum Co. in $4.5 Billion Deal
APA Corp. (APA) has announced a definitive agreement to acquire Callon Petroleum Co. (CPE) in a deal valued at approximately $4.5 billion, inclusive of debt. The transaction will be conducted as an all-stock deal, with APA offering 1.0425 shares of its common stock for each Callon share held.
Strengthening Financial Metrics and Expanding Short-Cycle Opportunities
This strategic acquisition is expected to have a positive impact on APA's key financial metrics. Additionally, it will enhance APA's inventory of short-cycle opportunities and bolster its presence in the Delaware Basin, where Callon possesses nearly 120,000 acres of valuable assets. The closing of the deal is anticipated to take place in the second quarter.
Majority Ownership and Complementary Assets
Upon completion of the acquisition, APA shareholders will own approximately 81% of the combined company, while Callon shareholders will hold the remaining 19%. APA's CEO and President, John J. Christmann IV, expressed enthusiasm about the deal, highlighting the synergy between Callon's strong portfolio in the Permian Basin and APA's existing Permian assets. This transaction will further expand APA's opportunities in the Delaware Basin.
Positive Market Reaction
Callon's stock demonstrated a premarket surge of 5.7% following the announcement of the acquisition.
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