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Jun 30, 2024
APA Q2 2024 Earnings Report
APA's financial performance was marked by exceeding production expectations and advancing strategic integration.
Key Takeaways
APA Corporation reported a strong second quarter in 2024, marked by higher-than-expected production across all operating areas and significant progress in integrating Callon assets. The company's net income attributable to common stock was $541 million, or $1.46 per diluted share, with adjusted earnings at $434 million, or $1.17 per diluted share. APA is raising its outlook for the back half of the year after adjusting for asset sales and expects a meaningful increase in free cash flow.
Reported production of 473,000 BOE per day; adjusted production was 405,000 BOE per day, excluding Egypt noncontrolling interest and tax barrels.
U.S. oil production exceeded second-quarter guidance, leading to raised full-year guidance.
U.S. oil production is expected to increase 8% from the second quarter to the fourth quarter of 2024.
Callon acquisition integration is proceeding ahead of schedule, with revised annual cost synergies estimated at $250 million, up $100 million from the initial estimate.
APA
APA
APA Revenue by Geographic Location
Revenue by Geographic Location
Egypt Revenue
CapyFin.comNorth Sea Revenue
CapyFin.com Forward Guidance
APA Corporation anticipates strong organic oil production growth in the Permian Basin and expects to see a meaningful increase in free cash flow.
Positive Outlook
- U.S. oil production is set to increase 8% from the second quarter to the fourth quarter of 2024.
- Full-year capital will be at or below company guidance of $2.7 billion.
- APA and TotalEnergies remain on track in Suriname for FID on Block 58 by year-end 2024 and first oil in 2028.
- Raising full-year estimate of net gain on third-party oil and gas purchases and sales to $350 million, which is $120 million higher than full-year guidance issued in May.
- Callon acquisition integration proceeding ahead of schedule; revised annual cost synergies estimate to $250 million, up $100 million from initial estimate.
Revenue & Expenses
Visualization of income flow from segment revenue to net income