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Jun 30, 2023
APA Q2 2023 Earnings Report
APA's second quarter results were driven by strong operational execution and cost management.
Key Takeaways
APA Corporation reported a strong second quarter in 2023, with net income attributable to common stock of $381 million, or $1.23 per diluted share. Adjusted earnings were $264 million, or $0.85 per diluted share. The company generated $1.0 billion in net cash from operating activities and $94 million in free cash flow.
Reported production of 399,000 barrels of oil equivalent (BOE) per day; adjusted production was 325,000 BOE per day.
Generated net cash from operating activities of $1 billion.
Returned 131% ($123 Million) of Free Cash Flow to shareholders in the second quarter.
Appraisal at Krabdagu-3 on Block 58 offshore Suriname confirms extension of oil resource 14 kilometers from the discovery well.
Revenue by Geographic Location
Forward Guidance
APA is on track to deliver total adjusted oil production growth of more than 10% for the year, driven by U.S. and Egypt performance. Drilling activity in the U.S. and Egypt is expected to remain at current levels. Full-year upstream capital investment guidance is reduced to $1.9 billion and full-year LOE outlook is lowered by $100 million to $1.4 billion.
Positive Outlook
- On track to deliver total adjusted oil production growth of more than 10% for the year, driven by U.S. and Egypt performance.
- Drilling activity in the U.S. and Egypt is expected to remain at current levels, as this activity pace optimizes operational efficiencies.
- Focus in Suriname is on completing the Krabdagu appraisal program and scoping an oil hub project to develop the combined Sapakara and Krabdagu resource.
- No additional drilling will be necessary in Suriname during 2023.
- Tracking in line with the full-year production guidance issued in February.
Challenges Ahead
- Full-year upstream capital investment guidance is reduced to $1.9 billion.
- Full-year LOE outlook is lowered by $100 million to $1.4 billion.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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