APA Corporation has concluded the acquisition of Callon Petroleum Company following shareholder approval at meetings held on March 27, 2024.

John J. Christmann IV, APA’s CEO, expressed optimism about the completed transaction, emphasizing the strategic value it brings by bolstering APA’s Delaware positioning and enhancing the overall Permian asset base, believed to be a compelling valuation.

“We are confident this transaction will create shareholder value, as we expect to drive improved capital productivity and well performance, while realizing significant cost synergies. We look forward to applying our technical expertise and work processes across the Callon acreage to unlock potentially substantial shareholder value,” said Christmann.

The acquisition will bring APA’s daily reported production to approximately 500,000 barrels of oil equivalent (BOE), approximately two-thirds coming from the Permian Basin.

The acquired assets include approximately 120,000 net acres in the Delaware Basin and 25,000 net acres in the Midland Basin. Callon’s fourth-quarter production was 103,000 BOE per day, comprising 58% oil and 80% liquids.

Subject to the terms of the merger agreement, each share of Callon common stock was converted into the right to receive 1.0425 shares of APA common stock, with cash in lieu of fractional shares. As a result, APA issued approximately 70 million shares of common stock related to the transaction. Callon stock is no longer listed for trading on the NYSE.

According to the merger agreement, each share of Callon common stock was converted into the right to receive 1.0425 shares of APA common stock, with cash offered in lieu of fractional shares. As a result, APA has issued approximately 70 million shares of common stock related to the transaction. Callon stock is no longer listed for trading on the NYSE, APA stated in a press release on Monday.