APA Corporation Announces Q3 2024 Financial Supplement
HOUSTON, Oct. 09, 2024 - APA Corporation (NASDAQ: APA) has recently shared supplemental financial and operational updates for the third quarter of 2024. This announcement aims to provide more depth about current estimates that management believes will significantly impact the third-quarter outcomes. It serves as a guide for investors and analysts to create their assessments rather than an exhaustive report of all influencing factors affecting third-quarter results.
Estimated Average Realized Prices for Q3 2024
In a detailed financial review, APA Corporation disclosed the estimated average realized prices across various segments for the third quarter of 2024:
Breakdown of Realized Prices
For oil, the company reported an average realization of $76.25 per barrel in the United States, while internationally, this figure rose to $80.00 per barrel. In terms of natural gas liquids (NGL), realizations were recorded at $20.75 per barrel domestically and $45.75 abroad. The figures for natural gas showed a stark difference, standing at $0.15 per Mcf in the United States versus $3.30 internationally.
Production Adjustments in Q3 2024
During the third quarter, APA curtailed approximately 103 MMcf/d of U.S. natural gas production due to unfavorable pricing trends, particularly at the Waha hub. Additionally, there was a reduction in NGL production by about 10,000 barrels per day, primarily related to the gas curtailments already implemented. Previous guidance released in July had indicated lower expected curtailments compared to actual adjustments made.
Update on Asset Sales
In a significant development, APA announced plans to divest non-core assets in the Permian Basin for an anticipated $950 million, subject to customary adjustments before finalizing. These properties are expected to contribute a production capacity of around 21 MBOE/D, consisting of 57% oil. It's important to note that the quarterly production guidance has excluded these assets, aligning production expectations with the transaction timeline.
Details on Share Structure
The estimated weighted-average common shares during third quarter 2024 stood at 370 million shares, displaying a slight decrease from the prior quarter's average of 371 million. In a move to strengthen shareholder value, APA executed a buyback of 0.1 million shares at an average price of $29.32.
Upcoming Earnings Call
APA Corporation is set to host a conference call on the company’s third-quarter 2024 results on Thursday, November 7, at 10 a.m. Central Time. This call will be webcasted from APA's official website. Investors can look forward to a replay that will be accessible for a full year following the live discussion, available on the company's Investor Relations page.
About APA Corporation
APA Corporation actively engages in exploring and producing oil and natural gas within the United States, Egypt, and the United Kingdom while also operating in offshore Suriname. The company is committed to transparency and regularly updates stakeholders with relevant operational and financial information on its website.
Frequently Asked Questions
What was the purpose of the Q3 supplemental information released?
The supplemental information aimed to provide additional context regarding third-quarter financial and operational results, assisting stakeholders in their evaluations.
What are the realized prices for oil in the U.S. and internationally?
In the U.S., the realized oil price was $76.25 per barrel, compared to $80.00 per barrel internationally.
How much natural gas production was curtailed in the U.S.?
APA curtailed approximately 103 MMcf/d of U.S. natural gas production in response to unfavorable market conditions.
What asset sale is APA Corporation currently pursuing?
The company is divesting non-core assets in the Permian Basin for approximately $950 million, with an expected production capacity of about 21 MBOE/D.
When is the earnings call scheduled?
The earnings call is scheduled for November 7, 2024, at 10 a.m. Central Time, with a replay available for a year afterward.
