•
Mar 31, 2023

APA Q1 2023 Earnings Report

APA's first quarter performance was marked by strong execution and cost management, resulting in exceeding oil production expectations and generating significant free cash flow.

Key Takeaways

APA Corporation reported a net income of $242 million, or $0.78 per diluted share, and an adjusted net income of $372 million, or $1.19 per diluted share, for the first quarter of 2023. The company generated $272 million in free cash flow and is reducing capital investment by $100 million due to lower Permian Basin natural gas prices.

Reported production of 394,000 barrels of oil equivalent (BOE) per day; adjusted production was 318,000 BOE per day.

Generated net cash from operating activities of $335 million, adjusted EBITDAX of $1.3 billion, and free cash flow (FCF) of $272 million.

Strong operational execution drove higher-than-expected 1Q adjusted oil production.

Announced reduction in 2023 capital investment by $100 million in response to lower Permian Basin natural gas prices; full-year capital budget now set at $1.9- to $2.0 billion.

Total Revenue
$2.03B
Previous year: $3.83B
-47.0%
EPS
$1.19
Previous year: $1.92
-38.0%
Adjusted EBITDAX
$1.3B
Previous year: $1.7B
-23.5%
Free Cash Flow
$272M
Previous year: $675M
-59.7%
Cash and Equivalents
$154M
Previous year: $234M
-34.2%
Free Cash Flow
$272M
Previous year: $675M
-59.7%
Total Assets
$13.2B
Previous year: $12.5B
+5.9%

APA

APA

APA Revenue by Geographic Location

Forward Guidance

APA is lowering full-year upstream capital investment guidance to $1.9- to $2.0 billion, with the entire $100 million decrease attributable to the reduction of lean gas activity in the Permian Basin. This change is not expected to have a material impact on 2023 U.S. production.