APA Corporation Finalizes Callon Petroleum Merger, Strengthens Permian Production Base

APA Corporation (NASDAQ: APA) has officially completed its acquisition of Callon Petroleum Company (NYSE: CPE), following shareholder approval at special meetings held on March 27, 2024. The transaction marks a significant consolidation within the U.S. oil and gas sector, substantially expanding APA’s operational footprint in key hydrocarbon-rich regions.

Strategic Significance of the Combination

The merger brings together complementary asset portfolios, with Callon Petroleum’s acreage enhancing APA’s existing Delaware and Midland Basin positions. Upon closing, APA’s combined daily production capacity reaches approximately 500,000 barrels of oil equivalent (BOE), with roughly two-thirds flowing from the Permian Basin—one of North America’s most prolific oil-producing regions. The acquired Callon assets comprise approximately 120,000 net acres in the Delaware Basin and 25,000 net acres in the Midland Basin.

The integration of Callon Petroleum’s operations is expected to unlock operational efficiencies and cost optimization opportunities. APA’s management anticipates improved capital productivity and enhanced well performance through the application of established technical expertise and operational methodologies across the combined acreage base.

Transaction Details and Production Profile

Under the merger agreement terms, each Callon common share was exchanged for 1.0425 APA shares, with cash paid for any fractional share interests. This share structure resulted in the issuance of approximately 70 million new APA shares. Callon Petroleum’s most recent production metrics showed approximately 103,000 BOE daily, with crude oil representing 58% of total output and total liquids comprising 80% of the production mix—a favorable composition reflecting higher-margin barrels.

Callon’s listed status on the NYSE has been terminated as part of the transaction completion, with operations now fully integrated into APA Corporation’s consolidated structure.

Growth and Synergy Expectations

Management commentary emphasizes confidence in value creation potential through synergy realization and operational optimization. The combination addresses scale considerations in the Permian Basin and facilitates a more balanced portfolio structure within APA’s broader asset base. Industry observers note that such consolidation moves are typically motivated by cost structure improvements and production curve optimization.

About APA Corporation

APA Corporation maintains active oil and gas exploration and production operations across the United States, Egypt, and the United Kingdom, with additional offshore exploration activities off Suriname. The company maintains detailed operational and investor information through its corporate channels.