APA has announced the sale of two non-core production properties in US by Apache Corporation and certain of its subsidiaries in two separate transactions with aggregate proceeds of more than $700 million, prior to customary closing adjustments.

“These transactions are consistent with our active management of the portfolio, and we will continue to look for opportunities to exit assets that are unlikely to compete for capital within our portfolio or to monetize non-core assets at attractive prices,” said John Christmann, CEO of Apache Corporation.

Combined, the properties represent estimated net production in the first-quarter 2024 of 13,000 barrels of oil equivalent per day (mboe/d), of which just over one-third is oil.

APA noted that proceeds from these asset sales will be used primarily to reduce nearer-term borrowings. The transactions expected to close early in the third-quarter 2024.

One property asset exists in the Midland Basin Minerals where Apache Corporation and its subsidiaries have agreed to sell nearly 24,000 net royalty acres across several counties.

These mineral and royalty interests were primarily non-operated properties that produced approximately 2.0 mboe/d net to Apache during the first quarter 2024. The effective date for the sale is April 1, 2024. Barclays served as the financial advisor for this transaction.

The other property asset lies in Texas where Apache Corporation and its subsidiaries have agreed to sell 237,000 net acres in the East Texas Austin Chalk and Eagle Ford plays with an effective date of Jan. 1, 2024.

Net production during the first quarter 2024 was approximately 11 mboe/d. TD Securities was the financial advisor to the company for this transaction.

Notably, 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 and elsewhere.