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Sep 30, 2022

APA Q3 2022 Earnings Report

APA Corporation reported strong Q3 2022 results driven by Permian Basin performance, offset by North Sea downtime.

Key Takeaways

APA Corporation announced its Q3 2022 financial results, reporting a net income of $422 million, or $1.28 per diluted share. Adjusted earnings were $651 million, or $1.97 per diluted share. The company generated $1.104 billion in net cash from operating activities and $609 million in free cash flow.

Generated net cash from operating activities of $1.104 billion, adjusted EBITDAX of $1.690 billion, and free cash flow of $609 million for the quarter.

Reported production of 382,000 barrels of oil equivalent (BOE) per day; adjusted production, which excludes Egypt noncontrolling interest and tax barrels, was 310,000 BOE per day.

Production in the U.S. exceeded expectations, driven by strong performance across the Permian Basin.

Announced a doubling of the quarterly dividend to an annualized rate of $1.00 per share.

Total Revenue
$2.87B
Previous year: $1.65B
+74.0%
EPS
$1.97
Previous year: $0.98
+101.0%
Adjusted EBITDAX
$1.69B
Previous year: $1.16B
+45.7%
Free Cash Flow
$609M
Cash and Equivalents
$268M
Previous year: $377M
-28.9%
Free Cash Flow
$609M
Previous year: $421M
+44.7%
Total Assets
$13.6B
Previous year: $13.3B
+2.4%

APA

APA

Forward Guidance

APA's full-year capital investment guidance remains unchanged at $1.725 billion. The company expects fourth-quarter adjusted production to be in the range of 328,000 to 332,000 BOE per day, up more than 5% from the third quarter, with the increase expected to be driven by higher oil production across its assets.

Positive Outlook

  • Fourth-quarter adjusted production to be in the range of 328,000 to 332,000 BOE per day.
  • Production increase expected to be driven by higher oil production across its assets.
  • Full-year capital investment guidance remains unchanged at $1.725 billion.
  • Significant progress on its 2022 ESG goals, achieving an environmental target to reduce Egypt upstream routine flaring by at least 40% ahead of schedule.
  • Company continues to implement new projects to eliminate at least 1 million tonnes of annualized CO2e emissions by year-end 2024.