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APA Boosts Production With Callon Petroleum Acquisition
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APA Corporation (APA - Free Report) has completed the acquisition of Callon Petroleum Company (CPE). Earlier this year, in January, APA announced the acquisition of Callon in an all-stock deal valued at $4.5 billion.
The acquisition should reportedly increase APA’s daily production to approximately 500,000 barrels of oil equivalent (BOE), approximately two-thirds of which will be sourced from the Permian Basin. APA has stated that the acquisition was made at a compelling valuation and Callon’s assets will provide additional scale to its Delaware position and balance its overall asset base in the Permian Basin. CPE’s assets include nearly 120,000 net acres in the Delaware Basin and 25,000 net acres in the Midland Basin.
APA’s management believes that the buyout will generate shareholder value by driving improved capital productivity and well performance. Additionally, it is expected to realize significant cost synergies for APA. The company looks forward to leveraging its technical expertise and work processes across the Callon acreage to generate substantial returns for shareholders.
Per the terms of the deal, every share of Callon’s common stock was converted into the right to receive 1.0425 shares of APA common stock, and fractional shares were settled in cash. APA had issued nearly 70 million shares of common stock to complete the transaction. Following this acquisition, the Callon stock will no longer be listed for trading.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores as well as distributors. Its current distribution yield is greater than the composite stocks in the industry, providing unitholders with consistent returns.
Helmerich & Payne is primarily involved in the contract drilling of oil and natural gas, with operations in all major U.S. onshore basins as well as in South America, Australia and the Middle East. In the past months, the company has secured eight new rig contracts with Saudi Aramco, thereby expanding its presence in the Middle East. With plans to capitalize on unconventional drilling growth opportunities, HP’s outlook seems positive.
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APA Boosts Production With Callon Petroleum Acquisition
APA Corporation (APA - Free Report) has completed the acquisition of Callon Petroleum Company (CPE). Earlier this year, in January, APA announced the acquisition of Callon in an all-stock deal valued at $4.5 billion.
The acquisition should reportedly increase APA’s daily production to approximately 500,000 barrels of oil equivalent (BOE), approximately two-thirds of which will be sourced from the Permian Basin. APA has stated that the acquisition was made at a compelling valuation and Callon’s assets will provide additional scale to its Delaware position and balance its overall asset base in the Permian Basin. CPE’s assets include nearly 120,000 net acres in the Delaware Basin and 25,000 net acres in the Midland Basin.
APA’s management believes that the buyout will generate shareholder value by driving improved capital productivity and well performance. Additionally, it is expected to realize significant cost synergies for APA. The company looks forward to leveraging its technical expertise and work processes across the Callon acreage to generate substantial returns for shareholders.
Per the terms of the deal, every share of Callon’s common stock was converted into the right to receive 1.0425 shares of APA common stock, and fractional shares were settled in cash. APA had issued nearly 70 million shares of common stock to complete the transaction. Following this acquisition, the Callon stock will no longer be listed for trading.
Zacks Rank and Key Picks
Currently, APA holds a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are Archrock Inc. (AROC - Free Report) , Sunoco LP (SUN - Free Report) and Helmerich & Payne (HP - Free Report) . Archrock and Sunoco presently sport a Zacks Rank #1 (Strong Buy) each, while Helmerich & Payne carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores as well as distributors. Its current distribution yield is greater than the composite stocks in the industry, providing unitholders with consistent returns.
Helmerich & Payne is primarily involved in the contract drilling of oil and natural gas, with operations in all major U.S. onshore basins as well as in South America, Australia and the Middle East. In the past months, the company has secured eight new rig contracts with Saudi Aramco, thereby expanding its presence in the Middle East. With plans to capitalize on unconventional drilling growth opportunities, HP’s outlook seems positive.