The Texas Commission on Environmental Quality (TCEQ) has officially processed permit transfers from Apache Corporation to Hilcorp Energy Company, providing further confirmation of APA Corporation’s (Nasdaq: APA) previously announced sale of non-core Permian Basin assets for $950 million. This transaction, disclosed in late 2024, involved properties in the Central Basin Platform, Texas and New Mexico Shelf, and the Northwest Shelf, with an estimated net production of 21,000 barrels of oil equivalent per day (boe/d), approximately 57% of which is oil.

Air Permit Transfer Report

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Key Findings from the TCEQ Permit Transfers

Recent data reveals multiple permit transfers to Hilcorp Energy Company, primarily covering air permits related to oil and gas production facilities. These include:

Facility Types: Tank batteries, oil and gas production sites, and satellite facilities.
Regions Affected: Permits cover sites across Hockley, Terry, and other counties in West Texas.
Project Status: All permit transfers are marked as “COMPLETE,” indicating finalized ownership changes.
Permit Types: The majority are categorized as Permit by Rule (PBR) or Exempt under TCEQ regulations.
Date of Transfers: The official TCEQ received date for the transfers is January 28, 2025.

Hilcorp Expands in the Permian Basin

Hilcorp Energy, known for acquiring and revitalizing mature assets, is strengthening its footprint in the Permian Basin with this latest acquisition. The company has a track record of leveraging operational efficiencies to maximize production from aging fields. By securing these Apache assets, Hilcorp is expected to enhance its existing operations in West Texas.

Strategic Implications

Apache’s Debt Reduction Strategy: The proceeds from the sale will primarily be used to reduce APA Corporation’s debt, aligning with its strategy to streamline operations and focus on higher-margin assets.
Hilcorp’s Growth in the Permian: With a history of optimizing legacy assets, Hilcorp is well-positioned to sustain production and potentially increase output from these newly acquired properties.
Regulatory Compliance: The swift permit transfer process suggests smooth regulatory approval, allowing for an uninterrupted transition of operations.

Conclusion

The confirmation of TCEQ permit transfers from Apache to Hilcorp solidifies the completion of a significant Permian Basin transaction. As Hilcorp integrates these assets into its portfolio, industry observers will be watching for its next steps in maximizing the potential of these properties. Meanwhile, APA Corporation continues its focus on capital discipline and strategic asset management, reinforcing its long-term financial outlook.

For more updates on oil and gas acquisitions and regulatory developments, stay tuned to our blog.