APA Corp (APA) Q2 Results - August 2

[dan_s]

Key Takeaways
• Reported production of 473,000 barrels of oil equivalent (BOE) per day; adjusted production, < Beat my forecast of 466,000 Boepd.
which excludes Egypt noncontrolling interest and tax barrels, was 405,000 BOE per day;
• Exceeded second-quarter U.S. oil production guidance and raising full-year guidance;
• Expect U.S. oil production to increase 8% from second-quarter 2024 to fourth-quarter 2024;
• Egypt adjusted production exceeded guidance by approximately 5% in the second quarter;
• Closed non-core asset sales of approximately $660 million in net proceeds, consisting of
approximately 13,000 BOE per day in first-quarter 2024;
• Returned $135 million of free cash flow to shareholders through dividends and share buybacks in
the second quarter; and
• Callon acquisition integration proceeding ahead of schedule; revised annual cost synergies
estimate to $250 million, up $100 million from initial estimate.

APA reported net income attributable to common stock of $541 million, or $1.46 per diluted share.
When adjusted for items that impact the comparability of results, APA’s second-quarter earnings were
$434 million, or $1.17 per diluted share. Net cash provided by operating activities was $877 million, and
adjusted EBITDAX was $1.6 billion. < Adjusted EPS of $1.17 beat my forecast of $0.97

I will update my forecast/valuation model for APA this afternoon.