APA Corporation's shares climbed 3.9% on Wednesday after the company disclosed an agreement to purchase Savant Alaska, LLC for approximately $70 million in upfront consideration, with further contingent payments linked to future development of the acquired eastern North Slope position.
The transaction transfers ownership of key midstream and field assets that sit adjacent to APA's existing acreage. Included in the purchase are the Badami facilities, which have a nameplate production capacity of about 40,000 barrels of oil per day, and the Nutaaq Pipeline, with capacity of roughly 80,000 barrels per day and providing access to the Trans-Alaska Pipeline System. APA described the infrastructure as extensive and supportive of near-term activity.
John J. Christmann IV, APA's chief executive officer, commented on the acquisition's strategic value, saying, "The acquisition of Savant secures control of strategic infrastructure adjacent to our eastern North Slope acreage, enhancing our ability to execute our planned drilling program efficiently."
Under the terms of the deal, APA will add about 104,000 gross acres to its holdings and will acquire production of approximately 1,500 barrels of oil per day through interests in the Badami and Grey Owl units. Once the transaction is completed, APA's total eastern North Slope position will be about 487,000 gross acres.
APA has assumed operatorship of the existing joint venture that includes partners Lagniappe Alaska, LLC and Oil Search (Alaska), LLC, which is a subsidiary of Santos Limited. The company anticipates carrying out a two-well drilling program in the 2026-2027 winter season, comprised of one exploration well and one appraisal well.
Company guidance states the acquired infrastructure is expected to support exploration and appraisal operations planned for 2026-2027, while also improving flexibility for future development. The parties expect the transaction to close by year-end 2026, subject to regulatory approvals and customary closing conditions.
This acquisition consolidates midstream control and adds acreage and near-term production to APA's Alaska portfolio. The combination of the Badami facilities and the Nutaaq Pipeline enhances APA's logistical access to the Trans-Alaska Pipeline System and supports the company's planned winter drilling campaign.