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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.
Revenue by Geographic Location
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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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