Debt ReductionAPA has agreed to divest non-core Permian properties in the Central Basin Platform, New Mexico Shelf, and Northwest Shelf for aggregate proceeds of $950MM, which are primarily earmarked for reducing debt.
Free Cash Flow And Buybacks2024 activity is expected to generate $1.2bn of pre-dividend free cash flow, facilitating cash returns of approximately $760MM, including around $410MM in buybacks.
Synergy And IntegrationInitial progress on the integration of CPE appears encouraging, with APA increasing deal synergies by another $25mm to $250mm per annum, mostly on additional G&A savings.