APA Corporation has entered into an agreement for the sale of non-core producing properties in the Permian Basin for $950 million, prior to customary closing adjustments.

The properties are in the Central Basin Platform, Texas and New Mexico Shelf, and Northwest Shelf and currently represent estimated net production of 21,000 barrels of oil equivalent per day (boe/d), of which approximately 57% is oil.

Proceeds from this sale will be used primarily to reduce debt, APA said.

The transaction is expected to close during the fourth-quarter 2024.

“Through multiple transactions completed this year, we have high graded and focused our US asset base. Our remaining Permian position has scale and balance in the unconventional Midland and Delaware Basins,” said John J. Christmann IV, CEO of APA Corporation.

“The net impact of our acquisition of Callon Petroleum and the follow-on asset sales is that APA has increased its onshore U.S. production by approximately 66,000 boe/d in 2024 and continued to add economic unconventional inventory, with no material change in net debt levels compared to year-end 2023,” Christmann added.

Pro-forma fourth-quarter US production guidance is 307,000 boe/d which is 34% above the company’s fourth-quarter 2023 production.

Christmann continued, “The company’s more focused unconventional Permian asset base and advantageous transport and marketing positions compares favorably with like-sized, pure-play peers in the region, while APA’s conventional global portfolio also provides geologic, geographic and price diversification as well as differential exploration upside.”