APA-Callon deal brings oil and gas consolidation trend into 2024

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Catching the wave

Apache parent APA Corp. said Thursday it would acquire Callon Petroleum in an all-stock transaction valued at approximately $4.5 billion, carrying an oil and gas consolidation trend into the new year.

Mergers are taking shape across Texas as publicly held oil companies seek to expand their inventories through acquisition. Through Callon, APA secures "quality rock" at a time when high-quality Permian acreage is getting harder to access. 

Last year was big for Texas oil companies (check out or roundup of the biggest deals of 2023) as they jockeyed for access to petroleum-rich plots of the Permian Basin and branched into new territories. Recent megadeals also struck by Chevron and Exxon put pressure on others in the oil industry to catch the consolidation wave or miss out. 

 

Claire Hao, Energy Reporter claire.hao@houstonchronicle.com

 

 

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