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Dec 31, 2023
APA Q4 2023 Earnings Report
APA's financial performance was solid, driven by strong Permian Basin execution and well performance.
Key Takeaways
APA Corporation reported a net income attributable to common stock of $1.8 billion, or $5.78 per share, for the fourth quarter of 2023. Adjusted earnings were $352 million, or $1.15 per share. The company's reported fourth-quarter production was 414,000 BOE per day, while adjusted production was 341,000 BOE per day. Net cash provided by operating activities was $1.0 billion, and adjusted EBITDAX was $1.4 billion.
APA reported net income attributable to common stock of $1.8 billion, or $5.78 per share, on a fully diluted basis.
Adjusted fourth-quarter earnings totaled $352 million or $1.15 on a diluted share basis.
Reported fourth-quarter production was 414,000 BOE per day; adjusted production was 341,000 BOE per day.
Net cash provided by operating activities in the fourth quarter was $1.0 billion, and adjusted EBITDAX was $1.4 billion.
Forward Guidance
In 2024, APA plans to invest $1.9 to $2.0 billion in upstream oil and gas capital. Total company adjusted oil and natural gas production is expected to be relatively flat year-over-year while NGL volumes are anticipated to be lower as the current strip prices would lead to ethane rejection in the U.S. for most of the year.
Positive Outlook
- Planning upstream capital budget of $1.9 to $2.0 billion.
- Investing to sustain production on a year-over-year basis.
- Forecasting strong U.S. oil growth in 2024, approximately 8% year-over-year and more than 10% from fourth-quarter 2023 to fourth-quarter 2024.
- Pending acquisition of Callon Petroleum Company adds scale to APA’s existing Delaware Basin assets and is expected to be accretive to key financial metrics.
- Committing to return at least 60% of FCF to shareholders.
Challenges Ahead
- Potential for lower year-over-year commodity prices.
- Prudently manage costs and high-grade capital to our most strategic opportunities.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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