Apa Corporation · NASDAQ:APA
Apa — Merger or Acquisition (January 2024)
13 slides from Apa's merger presentation, Jan 4, 2024
Slide 1: Accretive Permian Transaction
Accretive Permian Transaction JANUARY 4, 2024
Slide 2: Disclaimer: Forward-Looking Statements
Disclaimer Forward-Looking Statements This presentation and the oral statements made in connection therewith relate to a proposed business combination transaction between APA and Callon and contain “forward-looking statements” within the meaning of the federal securities laws, including Section 27A
Slide 3: Disclaimer (continued)
Disclaimer (continued) Non-GAAP Financial Measures This presentation includes financial information not prepared in conformity with generally accepted accounting principles (GAAP). Net debt and adjusted EBITDAX are non-GAAP measures. This non-GAAP information should be considered by the reader in ad
Slide 4: APA + Callon: Accretive Permian Transaction
APA + Callon | Accretive Permian Transaction – Permian pure-play with ~145,000 total net acres Callon Asset – ~119,000 net acres in the Delaware Basin Overview – ~26,000 net acres in the Midland Basin – Total Q3 2023 net production of ~102 Mboe/d (57% Oil) – All-stock transaction: 1.0425 shares of A
Slide 5: Transaction Highlights
Transaction Highlights Enhances APA’s Positioning as a Large Combined business of > 500 Mboe/d of production and enterprise value Cap Independent of approximately $21 billion Complementary Permian Acreage Delivers scale and balance across the Midland and Delaware basins; Positions increases APA oil-
Slide 6: Scale and Balance in the Midland / Delaware
Scale and Balance in the Midland / Delaware Delaware Midland APA Corporation Callon Petroleum (ex Alpine High) Net Midland / Delaware Acres (000’s)(1) 281 145 Delaware: 84 119 Midland: 197 26 Net Midland / Delaware Production (Mboe/d)(2) 142 101 Delaware: 49 75 Midland: 93 26 Midland / Delaware Prod
Slide 7: Callon Fulfills Criteria of APA's Disciplined M&A Approach
Callon Fulfills Criteria of APA’s Disciplined M&A Approach APA M&A Strategy Callon Attributes APA continuously screens opportunities Attracts capital within APA portfolio to add scale in the U.S. and across global footprint Builds scale / complementary Key considerations include: Permian footprint A
Slide 8: Significant Cost Synergies Identified
Significant Cost Synergies Identified Category Commentary Estimated Annual Run-Rate Savings – Elimination of duplicate public company costs and optimizing G&A on the Overhead ~$55 million combined asset base – Replacement of Callon’s debt cost with APA over time Cost of Capital ~$40 million – Includ
Slide 9: Differentiated Large Cap Independent with Diverse Asset Base
Differentiated Large Cap Independent with Diverse Asset Base Enhanced Permian Position with Large-Scale International Production and Exploration Upside NO RT H Balanced Global Production Base A L A S K A S E A 3Q 2023 Production P E RM I A N E G Y P T (% of total) APA United States 55% 412 Standalon
Slide 10: APA's Disciplined Financial Approach
APA’s Disciplined Financial Approach Return of Capital Balance Sheet – Return a minimum of 60% of free cash – APA intends to continue strengthening flow to shareholders through a Framework Framework the balance sheet and maintain current competitive base dividend and share investment grade metrics r
Slide 11: APA is a Highly Differentiated Large Cap E&P
APA is a Highly Differentiated Large Cap E&P – Short-cycle unconventional oil drilling inventory in the Permian is bolstered by transaction Diversified portfolio of – Onshore conventional development in Egypt and the option to resume drilling activity offshore in the UK North Sea high-quality develo
Slide 12: Attractive Pro Forma Maturity Profile
Attractive Pro Forma Maturity Profile 9/30/23 Pro Forma Debt Maturity Profile ($MM)(1)(2) 3,389 Long-Term Debt Anticipated Term Loan Debt 1,608 1,500 551 516 325 211 235 500 2023 2024 2025 2026 2027 2028 2029 2030 …. 2037+ (1) Excludes finance lease obligations and is before unamortized discount and
Slide 13: apacorp.com
apacorp.com