On August 1, 2024, APA Corp (APA, Financial) released its 8-K filing detailing its financial and operational results for the second quarter of 2024. Based in Houston, APA is an independent exploration and production company operating primarily in the US, Egypt, the North Sea, and Suriname. At year-end 2023, APA's proved reserves totaled 807 million barrels of oil equivalent, with net reported production of 405 thousand boe/day.
Performance Overview
APA Corp (APA, Financial) reported net income attributable to common stock of $541 million, or $1.46 per diluted share, surpassing the analyst estimate of $1.10 per share. Adjusted earnings were $434 million, or $1.17 per diluted share. The company also reported revenues of $2,543 million, exceeding the estimated $2,410.93 million.
Operational Highlights
APA's second-quarter production was 473,000 BOE per day, with adjusted production at 405,000 BOE per day. U.S. oil production saw a significant increase of 67% from the first quarter of 2024, driven by the addition of Callon assets. Despite asset sales and natural gas and NGL curtailments in the Permian Basin, total U.S. volumes were in line with company guidance.
“In the second quarter, we delivered higher-than-expected production across all three operating areas,” said John J. Christmann IV, APA’s chief executive officer.
Financial Achievements
APA Corp (APA, Financial) reported net cash provided by operating activities of $877 million and adjusted EBITDAX of $1.6 billion. The company also generated a net gain of $132 million from third-party oil and gas purchases and sales, surpassing its guidance of $100 million. APA is raising its full-year estimate of net gain on third-party oil and gas purchases and sales to $350 million, $120 million higher than the previous guidance.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenues | $2,543 million | $1,796 million |
| Net Income Attributable to Common Stock | $541 million | $381 million |
| Net Income Per Diluted Share | $1.46 | $1.23 |
Balance Sheet and Cash Flow
APA's upstream capital investment for the second quarter was $839 million, and general and administrative expenses were $85 million, both below guidance. The company plans to average nine to ten rigs in the Permian Basin and eleven rigs in Egypt for the remainder of 2024, expecting full-year capital to be at or below the guidance of $2.7 billion.
Exploration and Development
APA and its partner, TotalEnergies, are on track for FID on Block 58 in Suriname by year-end 2024, with first oil expected in 2028. In Alaska, APA and its partners were awarded an additional 51,000 gross acres, bringing the total lease position to 326,000 gross acres.
Conclusion
APA Corp (APA, Financial) has demonstrated robust financial and operational performance in Q2 2024, exceeding analyst estimates and setting a positive outlook for the remainder of the year. The company's strategic focus on production growth and cost management has positioned it well in the competitive oil and gas industry.
Explore the complete 8-K earnings release (here) from APA Corp for further details.
