APA Corporation (NASDAQ:APA) announced plans to acquire Callon Petroleum Company (NYSE:CPE) in a deal primarily involving stock, with an estimated value of about $4.5 billion, factoring in Callon's net debt.

Both APA and Callon's Boards of Directors have unanimously approved this definitive agreement, as detailed in their joint press release. John J. Christmann IV, the CEO and President of APA, stated that this acquisition aligns with APA's portfolio strategy and meets their criteria for evaluating growth opportunities externally. He noted that Callon's robust portfolio in the Permian Basin complements APA's existing assets in the region, enhancing their opportunities in the Delaware area.

The completion of this acquisition is expected in the second quarter of 2024, subject to standard closing conditions.