Apache - supplemental Q2 Information

[Petroleum economist]

HOUSTON, July 11, 2024 (GLOBE NEWSWIRE) -- APA Corporation (Nasdaq: APA) today provided supplemental information regarding certain second-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 second-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 second-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 second-quarter 2024.

Estimated Average Realized Prices – 2Q24
Oil (bbl) NGL (bbl) Natural Gas (Mcf)
United States $80.50 $21.50 $0.30
International $84.00 $43.00 $4.00

Egypt tax barrels: 38 MBoe/d
Realized loss on commodity derivatives (before tax): $6 million
Dry hole costs (before tax):~$55 million
Net gain on oil and gas purchases and sales (before tax):$130 million. Includes gain on natural gas purchased and sold to Cheniere.
* Dry hole cost represents $35 million of cost incurred for previously announced Alaskan exploration wells, and approximately $20 million associated with drilling in Egypt

Production update

APA curtailed approximately 78 MMcf/d of U.S. natural gas production in the second quarter in response to weak or negative Waha hub prices. APA also curtailed an estimated 7,600 barrels per day of natural gas liquids during the quarter, which were mostly associated with the voluntary gas curtailments. Previous second quarter guidance issued in May contemplated curtailments of ~50 MMcf/d of natural gas and ~5 Mb/d of NGLs.

Asset sales update

In May, APA announced agreements to divest non-core assets in the Midland Basin (primarily non-operated minerals) and East Texas (Austin Chalk / Eagle Ford). These sales packages closed in June, which was earlier than previously expected, resulting in an approximate 2.0 Mboe/d (30% oil), reduction to APA’s second quarter U.S. production. Aggregate net proceeds from the asset sales, after closing adjustments, were approximately $660 million.

Transaction, reorganization and separation costs

During the second quarter, APA incurred Transaction, Reorganization and Separation cash costs of approximately $95 million, the vast majority of which were associated with the acquisition of Callon Petroleum on April 1. Note that Transaction, Reorganization and Separation costs will not impact adjusted EPS and adjusted EBITDAX but will affect cash flow.

DD&A

APA did not previously provide second-quarter DD&A guidance due to the acquisition of Callon Petroleum. Based on current best estimates, APA believes second-quarter DD&A will be approximately $590 million.

Weighted-average shares outstanding

The estimated weighted-average basic common shares for the second quarter is 371 million, compared with a weighted average of 302 million shares in the first-quarter 2024. The second quarter share count increase reflects the issuance of approximately 69 million shares associated with the acquisition of Callon Petroleum on April 1. APA repurchased 1.5 million shares at an average price of $28.71 per share, during the second quarter.

Second-quarter 2024 earnings call

APA will host a conference call to discuss its second-quarter 2024 results at 10 a.m. Central time, Thursday, August 1. 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.

[dan_s]

Q2 results will include a full quarter of results from Callon Petroleum.
Most of APA's net income now from the Permian Basin.