APA Q2 2022 Earnings Report
Key Takeaways
APA Corporation announced strong second-quarter results with net income attributable to common stock of $926 million, or $2.71 per diluted share. Adjusted earnings were $811 million, or $2.37 per diluted share. The company generated $1.535 billion in net cash from operating activities and $814 million in free cash flow.
Reported production of 385,000 barrels of oil equivalent (BOE) per day; adjusted production was 305,000 BOE per day.
Generated net cash from operating activities of $1.535 billion, adjusted EBITDAX of $1.957 billion, and quarterly free cash flow of $814 million.
Repurchased 7 million shares of APA common stock during the quarter at an average price of $41.59 per share.
Increased gross oil production in Egypt and continued significant emissions reductions in the Western Desert.
APA
APA
APA Revenue by Geographic Location
Forward Guidance
APA expects production to increase in the back half of the year as drilling programs in Egypt and the Permian Basin progress, maintenance turnarounds conclude, and the Garten-3 well commences production in the North Sea. If recent strip prices hold, the company expects to generate approximately $3 billion of free cash flow in 2022, and by yearend, at least $1.8 billion of this capital will be returned to shareholders through dividends and share buybacks.
Positive Outlook
- Drilling program in Egypt reaches 15 rigs and efficiency levels improve
- Rate of well completions increases in the Permian Basin
- Summer maintenance turnarounds conclude
- Garten-3 well commences production in the North Sea
- Expect to generate approximately $3 billion of free cash flow in 2022
Challenges Ahead
- No specific negatives were mentioned about the forward guidance.