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Sep 30, 2023
APA Q3 2023 Earnings Report
APA's third-quarter results were announced, demonstrating strong well performance and execution in the Permian Basin.
Key Takeaways
APA Corporation reported a net income of $459 million, or $1.49 per diluted share, for the third quarter of 2023. Adjusted earnings were $410 million, or $1.33 per diluted share. The company generated $307 million in free cash flow and $1.4 billion in adjusted EBITDAX during the quarter. Adjusted global oil production exceeded the high-end of guidance, with a 20% year-over-year increase.
Reported production of 412,000 BOE per day; adjusted production, excluding Egypt noncontrolling interest and tax barrels, was 340,000 BOE per day.
Year-over-year U.S. oil volumes increased 16% driven by operating efficiencies and strong well performance in the Permian Basin.
Confirmed an estimated recoverable resource of 700 million barrels of oil at Sapakara and Krabdagu discoveries on Block 58, offshore Suriname.
Generated net cash from operating activities of $764 million and free cash flow of $307 million during the quarter.
Revenue by Geographic Location
Forward Guidance
The company expects total fourth-quarter production will be down slightly from the third quarter, due to facility downtime in the North Sea and a decline in natural gas volumes across the portfolio.
Challenges Ahead
- Total fourth-quarter production will be down slightly from the third quarter.
- Facility downtime is expected in the North Sea.
- A decline in natural gas volumes across the portfolio is expected.
- Upstream capital investment in the fourth quarter is expected to be approximately $500 million.
- Sixth drilling rig in Permian Basin
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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