APA Corporation has released its financial and operational results for the second quarter of 2024 (Q2 2024), reporting an increase in net income attributable to common stock of $541 million, compared to $381 million in Q2 of 2023.
The company also achieved adjusted EBITDAX amounting to $1.6 billion, a rise from Q2 of 2023 that amounted to $1.3 billion.
APA’s operational highlights include net cash provided by operating activities of $877 million.
John J. Christmann IV, APA’s chief executive officer, highlighted the company’s exceptional production across all operating areas, exceeding expectations.
“In the Permian Basin, we had outstanding second-quarter oil production performance and are raising our outlook for the back half of the year after adjusting for asset sales. We also had strong second-quarter performance in Egypt as we benefitted from newly implemented water injection initiatives on our base production and redirected workover rig capacity to opportunities on recompletions and offline volumes,” he added.
The first half of the year, the company focused on the integration of the Callon assets and rebalancing of drilling and workover rig programs in Egypt.
“We made tremendous progress on both fronts,” Christmann referred. “We are now poised for a strong second half where we will deliver significant organic oil production growth in the Permian Basin and expect to see a meaningful increase in free cash flow,” he added.
APA has reached production 473,000 barrel of oil equivalent per day (boe/d) in the Q2 of 2024, with an adjusted figure of 405,000 (boe/d), excluding Egypt noncontrolling interest and tax barrels.
While US oil production surged by 67% from the first quarter of 2024 to 139,500 barrels per day (bbl/d), a rise driven by the Callon acquisition. Despite asset sales and curtailments in natural gas and NGL production in response to pricing volatility in the Permian Basin, total US volumes were consistent with company guidance.
For the second quarter, APA guided a net gain on third-party oil and gas purchases and sales of $100 million, and the company generated $132 million.
Based on the second-quarter actuals and forward strip pricing, APA is raising its full-year estimate of net gain on third-party oil and gas purchases and sales to $350 million, which is $120 million higher than full-year guidance issued in May.
The company’s upstream capital investment and G&A expenses were lower than expected, while upstream lease operating expenses were in line with projections.
Looking ahead, APA plans to drill nine to 10 rigs in the Permian Basin and 11 rigs in Egypt for the rest of 2024. At this operational pace, the company anticipates that its full-year capital expenditure will be at or below the guidance of $2.7 billion.
