May 7 (Reuters) - APA Corp ( APA ) said on Wednesday

that it would sell its New Mexico Permian assets for $608

million as part of an effort to streamline operations and focus

on core areas, after it beat Wall Street estimates for

first-quarter profit.

The assets, which produce about 12,400 barrels of oil

equivalent per day (boepd), represent less than 5% of APA's

total Permian output.

The deal with Permian Resources ( PR ) is expected to

close in the second quarter, with proceeds expected to reduce

debt, the company said.

The move follows APA's acquisition of rival Callon

Petroleum last year, which expanded its operations in the

Permian shale basin of West Texas and New Mexico.

APA said its quarterly production stood at 468,978

boepd, compared to 389,157 boepd the previous year.

The rise in production helped the oil and gas producer

to offset a steep decline in crude prices.

Crude oil prices fell in the first-quarter as investors

braced for a production increase from OPEC+ and expressed

concerns over U.S. President Donald Trump's tariffs potentially

slowing global economic growth and reducing fuel demand.

APA's average oil price per barrel stood at $73.73 per

barrel in the January-March quarter, down from $80.65 per barrel

in the same period last year.

Given current market conditions, the company is also

reducing its rig count to six.

In February, APA said it

planned

to run eight rigs in the Permian and 12 rigs in Egypt.

APA also cut its 2025 development capital budget by $150

million.

The company also said it now expects $130 million in

cost savings for 2025, more than double its earlier estimate.

The Houston, Texas-based company said adjusted profit was

$1.06 per share for the three months ended March 31, surpassing

analysts' average estimate of 83 cents per share, according to

data compiled by LSEG.