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Mar 31, 2022

APA Q1 2022 Earnings Report

APA's first-quarter results reflected the benefits of modernized production sharing contract in Egypt and demonstrated the strength of a diversified, unhedged upstream oil and gas portfolio.

Key Takeaways

APA Corporation reported a strong first-quarter 2022, with net income attributable to common stock of $1.9 billion, or $5.43 per diluted share. Adjusted earnings were $668 million, or $1.92 per diluted share. The company generated $675 million in free cash flow and expects to generate approximately $2.9 billion for the full year 2022.

Reported production of 404,000 barrels of oil equivalent (BOE) per day; adjusted production was 322,000 BOE per day.

Generated net cash from operating activities of $891 million, adjusted EBITDAX of $1.7 billion, and free cash flow of $675 million, up 39% from previous quarter.

Announced discovery at Krabdagu exploration well on Block 58 offshore Suriname and spud Rasper exploration well on Block 53.

Retired $1.3 billion of bonds and repurchased more than $260 million of APA shares.

Total Revenue
$3.83B
Previous year: $2.09B
+83.0%
EPS
$1.92
Previous year: $0.91
+111.0%
Adjusted EBITDAX
$1.7B
Previous year: $1.14B
+49.1%
Free Cash Flow
$675M
Previous year: $502M
+34.5%
Cash and Equivalents
$234M
Previous year: $538M
-56.5%
Free Cash Flow
$675M
Total Assets
$12.5B
Previous year: $13.1B
-5.0%

APA

APA

APA Revenue by Geographic Location

Forward Guidance

APA is raising capital investment guidance for the full year by approximately 8%, to $1.725 billion, to support increased drilling activity in Suriname, as well as an expected increase in U.S. non-operated activity.

Positive Outlook

  • Increased drilling activity in Suriname.
  • Expected increase in U.S. non-operated activity.
  • Committed to capital investment program.
  • Committed to capital return framework.
  • Anticipate an increase in share repurchases if the current commodity price environment sustains through the year.