Insights into APA Corporation's 4Q 2024 Performance and Outlook

Overview of APA Corporation's Fourth-Quarter Results

HOUSTON — APA Corporation (NASDAQ: APA) has recently provided key insights regarding its operational and financial performance for the fourth quarter of 2024. This information aims to give investors and analysts a clearer understanding of the company's current estimates while noting that actual results may vary. This proactive approach is designed to help stakeholders form their expectations based on the most accurate forecasts available.

Estimated Average Realized Prices for 4Q24

In the fourth quarter, APA Corporation reported estimated average realized prices across different product lines. Noteworthy figures included approximately $70.25 per barrel for oil sourced from the United States and $74.75 per barrel from international operations. For NGLs and natural gas, the figures were reported as $24.50 and $1.00 per barrel in the U.S., and $50.50 and $4.00 internationally, respectively. These figures reflect the dynamic nature of the energy market and APA’s strategic positioning within it.

Production Update

During this quarter, APA Corporation faced challenges, leading to a curtailment of approximately 23.5 MBoe/d in production. This decision was primarily in response to unfavorable pricing conditions at the Waha hub. An earlier guidance had estimated curtailments around 22 MBoe/d, which indicates the company’s ability to remain adaptable in fluctuating market environments.

Impact of Asset Sales on Financial Health

Details of the Recent Divestiture

In September, APA announced a significant agreement to divest non-core assets located in the Permian Basin. This strategic decision culminated with a successful transaction completed by December 31, 2024. Following a deposit of $95 million received earlier in the process, the net proceeds from this sale amounted to approximately $774 million after adjustments.

Analysis of Financial Estimates

The supplemental information provided by APA also highlighted key financial figures, which include a realized gain of $1 million from commodity derivatives before tax. Moreover, there were dry hole costs amounting to $30 million, alongside a substantial net gain of $140 million attributed to oil and gas purchase and sale transactions. General administrative expenses were noted at $100 million.

Weighted-Average Shares Outstanding

For the fourth quarter of 2024, the estimated weighted-average basic common shares stood at 369 million, showing a slight decrease in comparison to the 370 million shares reported in the previous quarter. Additionally, the company actively repurchased 4.6 million shares at an average price of $21.90 each, reinforcing their commitment to shareholder value.

Upcoming Conference Call

APA Corporation is set to host a conference call to delve deeper into its fourth-quarter results at 10 a.m. Central time on February 27. Interested parties can access the call through APA’s corporate website, where a recorded replay will be made available for an entire year, ensuring stakeholders have continued access to this critical information.

About APA Corporation

APA Corporation operates through its consolidated subsidiaries, focusing on the exploration and production of oil and natural gas across various regions, including the United States and Egypt, and offshore in Suriname. The company maintains a robust online presence, where it shares operational updates, announcements, and investor information to keep the market informed.

Frequently Asked Questions

What are the key highlights from APA Corporation's fourth quarter of 2024?

Key highlights include adjusted production rates due to price conditions, asset sales generating substantial revenue, and a planned conference call for further discussions.

How did the asset sales impact APA's financials?

The recent divestiture brought in net proceeds of approximately $774 million, enhancing the company’s financial flexibility and focusing its resources on core operations.

What challenges did APA face in production during this quarter?

The company curtailed production by 23.5 MBoe/d due to unfavorable pricing conditions in the market, reflecting their ability to respond to market pressures quickly.

How many shares did APA repurchase in the fourth quarter?

APA repurchased approximately 4.6 million shares at an average price of $21.90 per share during the fourth quarter of 2024.

When is APA Corporation's earnings call scheduled?

The earnings call is scheduled for 10 a.m. Central time on February 27, providing insights into the company’s quarterly performance and future outlook.

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