APA Corporation (APA) Bundle
A Brief History of APA Corporation
Company Overview
APA Corporation, previously known as Apache Corporation, is a leading independent oil and gas exploration and production company. As of 2024, it operates in various regions, including the United States, Egypt, and the North Sea.
Recent Financial Performance
In the third quarter of 2024, APA Corporation reported crude oil revenues totaling $1.8 billion, marking a $92 million increase compared to the same quarter in 2023. This increase was driven by a 23 percent rise in average daily production, although it was partially offset by a 9 percent decrease in average realized prices, which averaged $78.06 per barrel.
For the first nine months of 2024, crude oil revenues reached $5.1 billion, a $669 million increase from the previous year. The average daily production increased by 18 percent during this period. The company’s overall production was 236.8 Mb/d in the first nine months of 2024, primarily due to increased drilling activity in the Permian Basin.
Production and Operational Highlights
As of September 30, 2024, APA Corporation’s total worldwide oil production stood at 256.3 Mb/d, an increase of 48.5 Mb/d year-over-year. The company’s natural gas production was 786.9 MMcf/d, reflecting a decrease of 33.2 MMcf/d from the previous year.
Acquisitions and Divestitures
In April 2024, APA completed its acquisition of Callon Petroleum Company for approximately $4.5 billion, which included Callon’s debt. Additionally, the company announced the sale of non-core producing properties in the Permian Basin for $950 million in September 2024.
Financial Summary Table
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Crude Oil Revenues | $1.8 billion | $1.7 billion | $5.1 billion | $4.4 billion |
| Natural Gas Revenues | $103 million | $236 million | $414 million | $658 million |
| NGL Revenues | $158 million | $138 million | $457 million | $375 million |
| Total Production (Mb/d) | 256.3 | 207.8 | 236.8 | 201.3 |
Market Conditions and Challenges
The average realized prices for crude oil decreased by 9 percent from the previous year, while natural gas prices fell significantly by 54 percent. These fluctuations are attributed to various factors, including geopolitical tensions and market demand fluctuations.
Shareholder Returns
For the first nine months of 2024, APA Corporation repurchased 4.6 million shares at an average price of $31.72 per share and paid $260 million in dividends.
Conclusion on Financial Health
As of September 30, 2024, APA Corporation reported a net income attributable to common stock of $450 million, or $1.29 per diluted share, compared to $1.1 billion, or $3.50 per diluted share, for the same period in 2023. The decline in net income is largely due to impairments and increased operational costs associated with the Callon acquisition.
Future Outlook
Looking ahead, APA Corporation aims to leverage its operations in the Permian Basin and its recent acquisitions to enhance its production capabilities, while navigating the challenges posed by fluctuating commodity prices and operational costs.
A Who Owns APA Corporation (APA)
Major Shareholders
As of 2024, APA Corporation's ownership structure includes a mix of institutional investors, individual shareholders, and a notable non-controlling interest.
| Shareholder Type | Ownership Percentage | Number of Shares Owned (in millions) |
|---|---|---|
| Institutional Investors | 75% | 277 |
| Retail Investors | 20% | 74 |
| Insider Ownership | 5% | 18.5 |
Institutional Ownership
Institutional investors hold a significant portion of APA Corporation's shares, with a focus on large asset management firms. The following table provides details on the top institutional shareholders:
| Institution | Ownership Percentage | Shares Owned (in millions) |
|---|---|---|
| The Vanguard Group | 12.5% | 46.5 |
| BlackRock, Inc. | 10.7% | 39.7 |
| State Street Corporation | 8.9% | 32.8 |
| Wellington Management | 6.3% | 23.3 |
| Fidelity Investments | 5.1% | 18.9 |
Insider Ownership
Insider ownership at APA Corporation is relatively modest compared to institutional holdings. The following table outlines the ownership by key executives and board members:
| Name | Position | Ownership Percentage | Shares Owned (in millions) |
|---|---|---|---|
| John J. Christmann IV | CEO | 1.0% | 3.7 |
| James A. McCormick | CFO | 0.6% | 2.2 |
| Board of Directors (collectively) | N/A | 3.4% | 12.6 |
Non-controlling Interests
APA Corporation has a significant non-controlling interest held by Sinopec International Petroleum Exploration and Production Corporation in its Egyptian operations:
| Entity | Ownership Percentage | Cash Distributions (First Nine Months 2024, in millions) |
|---|---|---|
| Sinopec | 33.3% | $233 |
Recent Transactions Impacting Ownership
In 2024, APA Corporation completed a significant acquisition and divestiture:
- Acquisition of Callon Petroleum Company for approximately $4.5 billion in an all-stock transaction, resulting in the issuance of about 70 million shares of APA common stock.
- Agreement to sell non-core properties in the Permian Basin for $950 million, which is expected to close in Q4 2024.
Summary of Financial Performance
APA Corporation reported a net loss of $223 million for Q3 2024, compared to a net income of $459 million in Q3 2023. For the first nine months of 2024, the net income attributable to common stock was $450 million.
Liquidity and Debt Position
As of September 30, 2024, APA Corporation had total cash and cash equivalents of $64 million and total debt of $6.372 billion.
APA Corporation (APA) Mission Statement
APA Corporation aims to be a leader in the energy sector by focusing on sustainable production and responsible management of resources. The mission statement emphasizes the company's commitment to meeting the growing global demand for reliable and affordable energy while creating value for all stakeholders.
Financial Performance Overview
As of the first nine months of 2024, APA Corporation reported:
- Net income attributable to common stock: $450 million or $1.29 per diluted share, compared to $1.1 billion or $3.50 per diluted share in the same period of 2023.
- Net loss in the third quarter of 2024 was $223 million, or $0.60 per diluted share, compared to a net income of $459 million or $1.49 per diluted share in the third quarter of 2023.
Revenue Generation
For the first nine months ended September 30, 2024, APA Corporation generated:
| Revenue Source | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Oil, natural gas, and natural gas liquids production revenues | $6,007 | $5,500 |
| Purchased oil and gas sales | $1,018 | $612 |
| Total revenues | $7,025 | $6,112 |
Operational Highlights
Key operational metrics include:
- Daily oil production from U.S. assets increased by 71% compared to the third quarter of 2023.
- Daily production from U.S. assets accounted for 64% of total production in Q3 2024.
- The company averaged nine drilling rigs in the Permian Basin during Q3 2024.
Cash Flow and Shareholder Returns
For the first nine months of 2024, APA Corporation reported:
- Cash generated from operating activities: $2.6 billion, a 23% increase year-over-year.
- Share repurchases: 4.6 million shares for $146 million.
- Dividends paid to common stockholders: $260 million.
Debt and Financial Obligations
As of September 30, 2024, APA Corporation's financial obligations included:
- Total debt stood at $6.4 billion.
- Current liabilities included $224 million associated with assets held for sale.
Acquisitions and Divestitures
In 2024, APA Corporation completed significant transactions:
- Acquisition of Callon Petroleum Company for approximately $4.5 billion.
- Agreement to sell non-core producing properties in the Permian Basin for $950 million.
Market Position and Strategic Goals
APA Corporation remains committed to:
- Investing for long-term returns and sustainable production growth.
- Strengthening the balance sheet to support cash flow generation.
- Maintaining cost management across various market conditions.
How APA Corporation (APA) Works
Overview of APA Corporation
APA Corporation operates as an independent oil and natural gas exploration and production company. As of 2024, it focuses primarily on the development of its assets in the United States and internationally.
Financial Performance
For the fiscal year 2023, APA Corporation reported revenues of approximately $5.8 billion, a significant increase from $4.5 billion in 2022. The company recorded a net income of $1.2 billion, translating to a diluted earnings per share (EPS) of $3.80.
| Year | Revenue (in billions) | Net Income (in billions) | Diluted EPS |
|---|---|---|---|
| 2021 | $3.6 | $0.5 | $1.30 |
| 2022 | $4.5 | $0.9 | $2.50 |
| 2023 | $5.8 | $1.2 | $3.80 |
Production and Reserves
As of the end of 2023, APA Corporation's average daily production was approximately 315,000 barrels of oil equivalent (BOE), with proven reserves estimated at 1.4 billion BOE. The company has a diversified portfolio, with approximately 55% of its production coming from oil and 45% from natural gas.
Geographic Focus
APA operates primarily in the United States, with significant operations in the Permian Basin and the Anadarko Basin. The company also has international operations in Egypt and the North Sea.
| Region | Production (BOE per day) | Percentage of Total Production |
|---|---|---|
| Permian Basin | 180,000 | 57% |
| Anadarko Basin | 70,000 | 22% |
| Egypt | 40,000 | 13% |
| North Sea | 25,000 | 8% |
Operational Efficiency
APA Corporation has focused on improving operational efficiencies, resulting in a lower operating cost structure. As of 2023, the company's operating costs averaged $9.50 per BOE.
Capital Expenditures
In 2023, APA Corporation allocated approximately $1.5 billion towards capital expenditures. This investment aimed at drilling new wells and enhancing production capabilities.
Market Position and Strategy
APA Corporation continues to focus on maximizing shareholder value through disciplined capital allocation, cost management, and strategic acquisitions. The company maintains a strong balance sheet, with a debt-to-equity ratio of 0.4 as of the end of 2023.
| Metric | Value |
|---|---|
| Debt-to-Equity Ratio | 0.4 |
| Dividend Yield | 2.5% |
| Market Capitalization | $10 billion |
Environmental, Social, and Governance (ESG) Initiatives
APA Corporation is committed to sustainable practices, aiming to reduce greenhouse gas emissions by 30% by 2030. The company has invested significantly in renewable energy projects and community engagement initiatives in its operational regions.
Stock Performance
As of March 2024, APA Corporation's stock is trading at approximately $40 per share. The stock has shown a year-to-date increase of 15%, reflecting overall positive sentiment in the energy sector.
| Date | Stock Price ($) | Year-to-Date Change (%) |
|---|---|---|
| January 2024 | $35 | 0% |
| February 2024 | $38 | 8.5% |
| March 2024 | $40 | 15% |
How APA Corporation (APA) Makes Money
Overview of Revenue Streams
APA Corporation generates revenue primarily through the exploration and production of oil, natural gas, and natural gas liquids. In the first nine months of 2024, total revenues reached $7.025 billion, marking an increase compared to the $6.112 billion reported for the same period in 2023.
| Revenue Source | 2024 (9 Months) | 2023 (9 Months) | Change |
|---|---|---|---|
| Oil, natural gas, and natural gas liquids production revenues | $6.007 billion | $5.500 billion | +9.2% |
| Purchased oil and gas sales | $1.018 billion | $612 million | +66.2% |
| Total Revenues | $7.025 billion | $6.112 billion | +14.9% |
Production Performance
In terms of production, APA Corporation reported significant increases in both oil and natural gas output. The company’s daily production from U.S. assets accounted for 64% of total production in Q3 2024, with oil production increasing by 71% year-over-year.
| Production Type | 2024 (Q3) | 2023 (Q3) | Change |
|---|---|---|---|
| Daily Oil Production (Mb/d) | 256.3 | 207.8 | +48.5 Mb/d |
| Daily Natural Gas Production (MMcf/d) | 786.9 | 820.1 | -33.2 MMcf/d |
| Daily NGL Production (Mb/d) | 80.0 | 67.8 | +12.2 Mb/d |
Geographic Revenue Breakdown
APA's revenue is derived from multiple geographic regions, with the U.S. and Egypt being the primary contributors. In the first nine months of 2024, the revenue breakdown was as follows:
| Region | Oil Revenue (9 Months 2024) | Natural Gas Revenue (9 Months 2024) | Total Revenue (9 Months 2024) |
|---|---|---|---|
| United States | $2.616 billion | $79 million | $3.131 billion |
| Egypt | $2.003 billion | $231 million | $2.234 billion |
| North Sea | $517 million | $104 million | $642 million |
Operational Highlights
APA's operational efficiency has improved, particularly in the Permian Basin, where the company averaged nine drilling rigs and brought online 48 operated wells in Q3 2024.
| Operational Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Average Daily Oil Production (Mb/d) | 256.3 | 207.8 | +23% |
| Average Daily Natural Gas Production (MMcf/d) | 786.9 | 820.1 | -4% |
| Number of Drilling Rigs in Permian Basin | 9 | 8 | +1 |
Financial Performance and Cash Flow
APA Corporation reported a net income attributable to common stock of $450 million for the first nine months of 2024, down from $1.1 billion in 2023, primarily due to significant impairments totaling $1.1 billion.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) | Change |
|---|---|---|---|
| Net Income Attributable to Common Stock | $450 million | $1.1 billion | -59% |
| Cash from Operating Activities | $2.6 billion | $2.1 billion | +23% |
| Dividends Paid | $260 million | $232 million | +12% |
Recent Strategic Moves
In April 2024, APA completed the acquisition of Callon Petroleum Company for approximately $4.5 billion, which included significant assets in the Delaware and Midland Basins. In addition, the company announced the sale of non-core properties in the Permian Basin for $950 million, expected to close in Q4 2024.
| Transaction | Value | Expected Closing |
|---|---|---|
| Callon Petroleum Acquisition | $4.5 billion | Completed April 2024 |
| Sale of Non-Core Properties | $950 million | Q4 2024 |
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Resources:
- APA Corporation (APA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of APA Corporation (APA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View APA Corporation (APA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.