Permian Resources completes acquisition of New Mexico assets from APA

Published 16/06/2025, 21:14
Permian Resources completes acquisition of New Mexico assets from APA

MIDLAND, Texas - Permian Resources Corporation (NYSE: PR) announced Monday it has completed its previously disclosed acquisition of leasehold and royalty interests in Eddy and Lea Counties, New Mexico from APA Corporation (NASDAQ: APA). APA, currently trading at a P/E ratio of 7.4x and offering a 4.8% dividend yield, has shown strong momentum with a 12.8% return over the past week. According to InvestingPro analysis, APA appears undervalued based on its Fair Value assessment.

The transaction, which was first announced earlier this year, involves oil and natural gas properties located in the core of the Delaware Basin, part of the larger Permian Basin region spanning West Texas and Southeast New Mexico. APA Corporation, with a market capitalization of $7.4 billion, has maintained dividend payments for 55 consecutive years, demonstrating long-term financial stability. Get deeper insights into APA’s valuation and 8 additional key ProTips with an InvestingPro subscription.

Permian Resources, headquartered in Midland, Texas, describes itself as the second largest Permian Basin pure-play exploration and production company. Following this acquisition, the company maintains approximately 450,000 net acres across the Permian Basin region.

The company focuses on the acquisition, optimization and development of oil and natural gas properties in the region. No financial details about the transaction were disclosed in the press release statement.

In other recent news, APA Corporation reported impressive financial results for the first quarter of 2025, surpassing earnings expectations with an earnings per share of $1.06 compared to the projected $0.74. Revenue also exceeded forecasts, reaching $2.61 billion against an anticipated $2.11 billion. Following this strong performance, Raymond James raised its price target for Apache Corp to $25, maintaining an Outperform rating, citing the company’s robust production and earnings. Additionally, APA Corporation announced a regular cash dividend of 25 cents per share, payable on August 22, 2025, reinforcing its commitment to shareholder returns.

In executive developments, APA Corporation has appointed Aneil Kochar as vice president and treasurer, succeeding Ben C. Rodgers who was promoted to chief financial officer. The company also announced the departure of D. Clay Bretches, Executive Vice President of Operations. APA Corp continues to implement cost-cutting initiatives, achieving $130 million in savings in 2025, with expectations to reach $225 million by year-end. These strategic moves are part of APA’s efforts to enhance operational efficiency and financial management.

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