APA Corporation provides updated financial estimates for Q4 2024, including production curtailments and asset sale details.
Quiver AI Summary
APA Corporation has released supplemental information regarding its projected fourth-quarter 2024 financial and operational results, aiming to assist investors and analysts in forming their estimates. The company estimates average realized prices for oil, NGL, and natural gas, both domestically and internationally. APA reported production curtailments of approximately 23.5 MBoe/d in response to weak pricing. Additionally, the company finalized the divestiture of non-core assets in the Permian Basin, netting about $774 million after adjustments. The estimated weighted-average basic shares for the quarter is approximately 369 million, with 4.6 million shares repurchased at an average price of $21.90. A conference call is scheduled for February 27, 2025, to discuss these results further.
Potential Positives
- APA Corporation successfully closed a divestiture of non-core assets in the Permian Basin, resulting in net proceeds of approximately $774 million, which strengthens their financial position.
- The company reported a realized gain on commodity derivatives of $1 million, indicating effective risk management in their operations.
- APA repurchased 4.6 million shares at an average price of $21.90, demonstrating confidence in their financial health and commitment to returning value to shareholders.
Potential Negatives
- APA Corporation announced curtailments of approximately 23.5 MBoe/d in production due to weak or negative Waha hub prices, indicating challenges in pricing and demand that could impact future revenues.
- The company disclosed significant dry hole costs estimated at $30 million, which can signal inefficiencies and potential misallocation of resources in exploration activities.
- The estimated gain on commodity derivatives before tax was only $1 million, suggesting limited success in hedging strategies for commodity price volatility.
FAQ
What financial results did APA Corporation announce for the fourth quarter of 2024?
APA Corporation provided estimates for oil, NGL, and natural gas prices, as well as production curtailments and asset sales for Q4 2024.
When is the upcoming earnings call for APA Corporation?
The earnings call to discuss fourth-quarter 2024 results is scheduled for 10 a.m. Central time on February 27, 2025.
What significant asset sale did APA Corporation complete recently?
APA announced the divestiture of non-core assets in the Permian Basin, closing the sale on December 31, 2024, for approximately $774 million.
How much production did APA curtail in response to market conditions?
APA curtailed approximately 23.5 MBoe/d in Q4 2024 due to weak or negative Waha hub prices.
Where can investors find additional information about APA Corporation?
Investors can access announcements, operational updates, and press releases on APA Corporation's website at www.apacorp.com.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$APA Insider Trading Activity
$APA insiders have traded $APA stock on the open market 1 times in the past 6 months. Of those trades, 1 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $APA stock by insiders over the last 6 months:
- JULIET S ELLIS purchased 4,391 shares for an estimated $100,026
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$APA Hedge Fund Activity
We have seen 292 institutional investors add shares of $APA stock to their portfolio, and 326 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- HARRIS ASSOCIATES L P added 4,293,932 shares (+20.8%) to their portfolio in Q3 2024, for an estimated $105,029,576
- HOTCHKIS & WILEY CAPITAL MANAGEMENT LLC added 3,411,270 shares (+12.6%) to their portfolio in Q3 2024, for an estimated $83,439,664
- BALYASNY ASSET MANAGEMENT L.P. added 2,943,311 shares (+493.3%) to their portfolio in Q3 2024, for an estimated $71,993,387
- INVESCO LTD. removed 2,455,684 shares (-16.6%) from their portfolio in Q3 2024, for an estimated $60,066,030
- SQUAREPOINT OPS LLC removed 2,195,606 shares (-86.1%) from their portfolio in Q3 2024, for an estimated $53,704,522
- MARSHALL WACE, LLP added 1,830,175 shares (+inf%) to their portfolio in Q3 2024, for an estimated $44,766,080
- CITADEL ADVISORS LLC added 1,313,941 shares (+147.1%) to their portfolio in Q3 2024, for an estimated $32,138,996
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
HOUSTON, Jan. 22, 2025 (GLOBE NEWSWIRE) -- APA Corporation (Nasdaq: APA) today provided supplemental information regarding certain fourth-quarter 2024 financial and operational results. This information is intended only to provide additional information regarding current estimates management believes will affect results for the fourth-quarter 2024. It is provided to assist investors, analysts and others in formulating their own estimates, and is not intended to be a comprehensive presentation of all factors that will affect fourth-quarter 2024 results. Actual results and the impact of factors identified here may vary depending on the impact of other factors not identified here and are subject to finalization of the financial reporting process for fourth-quarter 2024.
Estimated Average Realized Prices – 4Q24 | ||||||
Oil (bbl) | NGL (bbl) | Natural Gas (Mcf) | ||||
United States | $70.25 | $24.50 | $1.00 | |||
International | $74.75 | $50.50 | $4.00 |
Egypt tax barrels: | 35 MBoe/d |
Realized gain on commodity derivatives (before tax): | $1 million |
Dry hole costs (before tax): | $30 million |
Net gain on oil and gas purchases and sales (before tax): | $140 million |
General and administrative expense: | $100 million |
Production update
APA curtailed approximately 23.5 MBoe/d in the fourth quarter in response to weak or negative Waha hub prices. Fourth-quarter 2024 guidance issued in November contemplated curtailments of 22 MBoe/d.
Asset sale update
In September, APA announced an agreement to divest non-core assets in the Permian Basin. This divestiture closed on Dec. 31, 2024. After a deposit of $95 million received in September and a purchase price adjustment for the effective date of July 1, 2024, net proceeds were approximately $774 million.
Weighted-average shares outstanding
The estimated weighted-average basic common shares for the fourth quarter is 369 million, compared with a weighted average of 370 million shares in the third-quarter 2024. APA repurchased 4.6 million shares at an average price of $21.90 per share during the fourth quarter.
Fourth-quarter 2024 earnings call
APA will host a conference call to discuss its fourth-quarter 2024 results at 10 a.m. Central time, Thursday, February 27. The conference call will be webcast from APA’s website at www.apacorp.com and investor.apacorp.com. Following the conference call, a replay will be available for one year on the “Investors” page of the company’s website.
About APA
APA Corporation owns consolidated subsidiaries that explore for and produce oil and natural gas in the United States, Egypt and the United Kingdom and that explore for oil and natural gas offshore Suriname and elsewhere. APA posts announcements, operational updates, investor information and press releases on its website, www.apacorp.com .
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “continues,” “could,” “estimates,” “expects,” “goals,” “guidance,” “may,” “might,” “outlook,” “possibly,” “potential,” “projects,” “prospects,” “should,” “will,” “would,” and similar references to future periods, but the absence of these words does not mean that a statement is not forward-looking. These statements include, but are not limited to, statements about future plans, expectations, and objectives for operations, including statements about our capital plans, drilling plans, production expectations, asset sales, and monetizations. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See “Risk Factors” in APA’s Form 10-K for the year ended December 31, 2023, and in our quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission for a discussion of risk factors that affect our business. Any forward-looking statement made in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. APA and its subsidiaries undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development or otherwise, except as may be required by law.
Contacts
Investor: | (281) 302-2286 | Ben Rodgers |
Media: | (713) 296-7276 | Alexandra Franceschi |
Website: | www.apacorp.com | |
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