APA Corporation

APA Corporation

Company type	Public company
Industry	Hydrocarbon exploration
Predecessor	Apache Corporation
Founded	January 1, 1954 (1954-01-01) in Minneapolis, United States
Founder	Truman Anderson, Raymond Plank, Charles Arnao
Headquarters	Houston, Texas , United States
Area served	United States, Egypt, North Sea
Key people	G. Steven Farris (CEO as of 2007)
Products	Oil and natural gas exploration and production
Parent	None

APA Corporation serves as the parent company of Apache Corporation, a U.S.-based hydrocarbon exploration firm incorporated in Delaware and headquartered in Houston, Texas. It holds the 431st position on the Fortune 500 list.

History

Established in 1954 in Minneapolis by Truman Anderson, Raymond Plank, and Charles Arnao with initial capital of $250,000, Apache completed its inaugural drilling operations in the Cushing field by 1955. The company launched its initial public offering in 1969. Early diversification efforts included venturing into agriculture through the acquisition of S&J Ranch, which was later sold in 1987, and the creation of its oil and gas operating subsidiary, Apache Exploration Company (Apexco), in 1971.

During the 1980s and 1990s, Apache pursued growth via substantial acquisitions and strategic initiatives: entering the Gulf of Mexico through a joint venture with Shell in 1980; establishing the first publicly traded master limited partnership in the United States in 1981; and acquiring assets from David Holdings for $200 million in 1985 as well as from Occidental Petroleum in 1986. The corporate headquarters relocated from Minneapolis to Denver in 1987 and subsequently to Houston in 1992.

Significant acquisitions included doubling its reserves by purchasing Amoco’s assets in 1991; expanding offshore Western Australia operations through Hadson Energy Resources in 1993; and gaining access to Egypt’s Qarun Concession in 1994. Mid-1990s growth was further bolstered by acquiring interests from Texaco and Phoenix Resources, broadening its footprint across North America and Egypt.

In 1999, Apache acquired Royal Dutch Shell’s Gulf of Mexico assets for $715 million plus stock consideration. Early 2000s expansion involved purchasing Repsol’s Egyptian interests for $410 million in 2001, acquiring BP’s Forties oilfield—the largest field in the UK North Sea—and Gulf of Mexico assets totaling $1.3 billion in 2003. In 2005, Apache partnered with ExxonMobil to operate in Western Canada.

The company divested certain holdings: selling its Egyptian deepwater interests to Hess for $413 million in 2005; disposing of Chinese oil production assets to Roc Oil for $260 million in 2006; exiting Western Australia operations for $2.1 billion in 2015; selling Scottish pipeline interests in 2016; and transferring Canadian assets to Paramount Resources in 2017.

Major acquisitions persisted with purchases including Devon Energy’s Gulf of Mexico properties for $1.05 billion in 2010; BP’s assets across Texas, New Mexico, Canada, and Egypt for $7 billion also in 2010; Mariner Energy for $2.7 billion that same year; ExxonMobil’s Beryl field located in the North Sea in 2012; and Cordillera Energy Partners for $2.5 billion later in 2012—adding roughly 71 million barrels of oil equivalent to its reserves.

In 2013, Apache sold a one-third minority share of its Egyptian assets to Sinopec. Despite investing approximately $3 billion into the Alpine High shale play, it was deemed unsuccessful by 2020, prompting leadership changes.

In January 2021, APA Corporation revised its production sharing contract framework with the Egyptian General Petroleum Corporation to modernize terms. By March 2021, APA Corporation was designated as the holding entity overseeing all subsidiaries.

Most recently, in January 2024, APA Corporation agreed to acquire Callon Petroleum Company through an all-stock deal valued near $4.5 billion including net debt.

Operations

In 2021, the company’s daily production averaged , with the United States accounting for 59%, Egypt contributing 29%, and the North Sea making up the remaining 12%. By the end of that year, the firm’s proved reserves totaled , distributed as 68% in the U.S., 20% in Egypt, and 12% in the North Sea.

The majority of U.S. reserves are located in the Permian Basin, complemented by assets in western Oklahoma, the Texas Panhandle, and southern Texas. Since 1994, the company has maintained uninterrupted operations in Egypt's remote Libyan Desert despite regional political challenges. Its presence in the North Sea began in 2003, primarily centered around the Forties oilfield.

2013 Toxic Waste Spill

On June 1, 2013, a pipeline failure in northern Alberta, Canada resulted in the discharge of 60,000 barrels (approximately 9.5 million litres) of hazardous waste, constituting one of the largest spills of its kind on the continent.

Pipeline Explosion

In June 2008, an explosion occurred on a natural gas pipeline at the company’s processing facility on Varanus Island, which precipitated the 2008 Western Australian gas crisis. Subsequent legal charges were dismissed due to procedural issues.

Efforts to Restrict Shareholder Proposals

In 2007, CEO G. Steven Farris petitioned the U.S. Securities and Exchange Commission to impose restrictions on nonbinding shareholder proposals presented during annual meetings.