Houston’s APA Corp., which in recent years has pursued overseas oil and gas prospects, is storming back to the Permian Basin with a $4.5 billion all-stock takeover of Callon Petroleum Co.

APA, long a Permian exploration and production (E&P) stalwart, already has a broad portfolio in the Midland and Delaware formations. In the Delaware, where the super independent has a wide swath of natural gas-rich opportunities, Callon has nearly 12,000 acres. The deal overall would give APA another 145,000 acres.

“Callon has built a strong portfolio in the Permian Basin that is complementary to our existing Permian assets and rounds out our opportunity set in the Delaware,” APA CEO John J. Christmann Jr. said. 

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