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Dec 31, 2022

APA Q4 2022 Earnings Report

Announced fourth-quarter and full-year 2022 financial and operational results.

Key Takeaways

APA Corporation reported a net income attributable to common stock of $443 million, or $1.38 per share on a fully diluted basis for Q4 2022. Adjusted earnings were $476 million, or $1.48 per share. The company's reported fourth-quarter production was 414,000 BOE per day, with adjusted production at 334,000 BOE per day. Net cash provided by operating activities was $1.4 billion, and adjusted EBITDAX was $1.5 billion.

Delivered full-year net cash from operating activities of $4.9 billion, adjusted EBITDAX of $6.8 billion and $2.5 billion of free cash flow (FCF).

Returned $1.6 billion of FCF to shareholders and exceeded 60% capital return to shareholders commitment.

Reported fourth-quarter production was 414,000 BOE per day; adjusted production, which excludes Egypt noncontrolling interest and tax barrels, was 334,000 BOE per day.

APA ended the year with strong performance in each of our operational areas

Total Revenue
$2.38B
Previous year: $2.4B
-1.0%
EPS
$1.48
Previous year: $1.29
+14.7%
Adjusted EBITDAX
$1.5B
Previous year: $1.3B
+15.4%
Free Cash Flow
$360M
Cash and Equivalents
$245M
Previous year: $302M
-18.9%
Free Cash Flow
$360M
Total Assets
$13.1B
Previous year: $13.3B
-1.2%

APA

APA

APA Revenue by Geographic Location

Forward Guidance

In 2023, APA plans to invest $2.0 to $2.1 billion in upstream oil and gas capital, which is consistent with the preliminary guidance provided in the third-quarter 2022. This capital investment level is expected to result in year-over-year adjusted BOE growth of 4 to 5%, underpinned by a more than 10% increase in oil volumes.

Positive Outlook

  • Reiterating upstream capital budget of $2.0 to $2.1 billion.
  • Expecting adjusted barrels of oil equivalent (BOE) growth of 4 to 5%, and oil growth of more than 10%.
  • Substantial upside FCF potential from Cheniere gas sales contract commencing in third-quarter 2023.
  • Committed to returning at least 60% of FCF to shareholders and strengthening the balance sheet.
  • Continuing to appraise and explore Block 58 offshore Suriname.