APA Corp. ( (APA) ) has released its Q4 earnings. Here is a breakdown of the information APA Corp. presented to its investors.
APA Corporation is a prominent player in the oil and natural gas sector, with operations spanning the United States, Egypt, the United Kingdom, and offshore Suriname, known for its strategic exploration and production activities.
In its latest earnings report, APA Corporation announced robust financial results for the fourth quarter and full year of 2024, highlighting significant achievements such as a net cash flow of $3.6 billion from operating activities and an adjusted EBITDAX of $5.9 billion. The company also reported a net income of $804 million for the year, with adjusted earnings of $1.3 billion.
Key financial metrics included a free cash flow of $841 million, with $599 million returned to shareholders. The company made strategic moves by acquiring Callon Petroleum Company and selling conventional assets, which led to a 22% reduction in breakeven oil prices. APA also achieved a final investment decision for the GranMorgu project in Suriname and signed a new gas price agreement in Egypt, aligning gas investments with oil.
Looking ahead to 2025, APA plans to invest $2.5 to $2.6 billion in upstream capital, with a focus on the GranMorgu project and exploration in Alaska. The company aims to increase production by 3% to 396,000 barrels of oil equivalent per day and implement cost-saving initiatives targeting $350 million in savings by 2027. APA remains committed to returning at least 60% of free cash flow to shareholders.
APA Corporation’s management remains optimistic about the future, emphasizing the strategic realignment of its portfolio and cost reduction initiatives. These efforts are expected to enhance the company’s production stability and financial performance, positioning APA for long-term growth and success.