8-K
APA Corp (APA)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 26, 2025
APA CORPORATION
(Exact name of registrant as specified in its charter)
| Delaware | 001-40144 | 86-1430562 |
|---|---|---|
| (State or other jurisdiction<br> <br>of incorporation) | (Commission<br> <br>File Number) | (IRS Employer<br> <br>Identification No.) |
2000 W Sam Houston Pkwy S, Suite 200
Houston, Texas 77042-3643
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (713) 296-6000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br>Symbol(s) | Name of each exchange<br> <br>on which registered |
|---|---|---|
| Common Stock, $0.625 par value | APA | Nasdaq Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
The information in this Current Report on Form 8-K, including Exhibit 99.1 furnished herewith, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of Section 18, and shall not be incorporated by reference in any filing under the Securities Act or the Exchange Act, except as set forth by specific reference in such filing.
| Item 2.02. | Results of Operations and Financial Condition. |
|---|
On February 26, 2025, APA Corporation issued a press release announcing financial and operating results for the fiscal quarter and year ended December 31, 2024. The full text of the press release is furnished herewith as Exhibit 99.1 and incorporated herein by reference.
| Item 9.01. | Financial Statements and Exhibits. |
|---|---|
| (d) | Exhibits. |
| --- | --- |
| Exhibit<br>No. | Description |
| --- | --- |
| 99.1 | Press Release of APA Corporation dated February 26, 2025. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| APA CORPORATION | ||
|---|---|---|
| Date: February 27, 2025 | By: | /s/ Rebecca A. Hoyt |
| Rebecca A. Hoyt | ||
| Senior Vice President, Chief Accounting Officer, and<br>Controller | ||
| (Principal Accounting Officer) |
EX-99.1
Exhibit 99.1
| NEWS RELEASE |
|---|
APA Corporation Announces Fourth-Quarter and
Full-Year 2024 Financial and Operational Results
2024 Highlights
| • | Delivered full-year net cash provided by operating activities of$3.6 billion, adjusted EBITDAX of $5.9 billion, and $841 million of free cash flow (FCF); |
|---|---|
| • | Returned $599 million to shareholders or 71% of FCF; |
| --- | --- |
| • | Transformed Permian portfolio through the acquisition of Callon Petroleum Company and the sale of conventionalCentral Basin Platform assets; realized an initial 22% reduction in breakeven oil price on Callon Delaware acreage; |
| --- | --- |
| • | Achieved final investment decision for the GranMorgu Phase 1 project in Suriname Block 58 with partnerTotalEnergies; and |
| --- | --- |
| • | Signed a new gas price agreement in Egypt, bringing gas-focusedinvestment to economic parity with oil. |
| --- | --- |
2025 Outlook
| • | Planning upstream capital budget of $2.5 to $2.6 billion; includes$200 million for GranMorgu development and $100 million for exploration; |
|---|---|
| • | Total adjusted production expected to be 396,000 barrels of oil equivalent (BOE) per day; 3% higher than2024; |
| --- | --- |
| • | Implementing cost-saving initiatives across overhead, lease operating expense (LOE) and capital, targeting$350 million in run-rate savings by year-end 2027; and |
| --- | --- |
| • | Committed to returning at least 60% of FCF to shareholders. |
| --- | --- |
HOUSTON, Feb. 26, 2025 – APA Corporation (Nasdaq: APA) today announced its financial and operational results for the fourth quarter and full-year 2024.
In the fourth quarter, APA reported net income attributable to common stock of $354 million or $0.96 per diluted common share. When adjusting for items that impact the comparability of results, APA’s fourth-quarter earnings were $290 million, or $0.79 per diluted share. Net cash provided by operating activities was $1.0 billion, and adjusted EBITDAX was $1.6 billion.
Fourth-quarter reported production was 488,000 BOE per day. Adjusted production, excluding Egypt noncontrolling interest and tax barrels, was 418,000 BOE per day.
For the full-year 2024, APA reported net income attributable to common stock of $804 million, or $2.27 per diluted common share. On an adjusted basis, APA’s 2024 earnings totaled $1.3 billion or $3.77 per diluted common share. Reported full-year production was 455,000 BOE per day; adjusted production was 385,000 BOE per day. Full-year net cash provided by operating activities was $3.6 billion, and adjusted EBITDAX was $5.9 billion.
Page 1 of 5
APA CORPORATION ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2024 FINANCIAL AND OPERATIONALRESULTS
During the year, APA generated $841 million of free cash flow, repurchased $246 million of common stock, and paid $353 million in dividends. The company ended the year with debt of $6 billion and cash of $625 million, an increase in net debt of only $300 million from the end of 2023, despite adding over $2 billion of debt with the Callon acquisition.
CEO Commentary
“Over the last several years, APA has been strategically reshaped in numerous ways. We have enhanced the quality and sustainability of the portfolio in our core areas of the Permian Basin and the Western Desert of Egypt, while also building optionality through a differentiated exploration strategy,” said John J. Christmann IV, APA’s chief executive officer.
“In 2024, we continued this momentum with the acquisition of Callon, the final investment decision for the GranMorgu project in Suriname, and the new gas agreement in Egypt. These actions have further strengthened our portfolio and improved the quality of our investment opportunities, positioning APA for long-term growth and success. We have assembled a large-scale unconventional position in the Permian Basin, surpassing many of our pure-play peers. In addition, we made further progress on strengthening our balance sheet, achieving investment-grade status with all three rating agencies.”
2025 Capital Budget and Outlook
In 2025, APA plans to invest $2.5 to $2.6 billion in upstream oil and gas capital. This includes $200 million toward progressing the GranMorgu project in Suriname and $100 million for exploration activities, predominantly in Alaska.
Total company adjusted production is expected to be relatively flat year-over-year at around 396,000 BOE per day. U.S. oil volumes should stay relatively consistent at 125,000 to 127,000 barrels of oil per day, and gas volumes will benefit from no price-related curtailments. In Egypt, gross production is expected to decline modestly, while adjusted volumes should grow slightly year-over-year, to 69,000 BOE per day compared to 67,500 BOE per day in 2024.
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APA CORPORATION ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2024 FINANCIAL AND OPERATIONALRESULTS
“Our 2025 plan builds on the progress achieved in 2024,” continued Christmann. “Through inventory expansion in the Permian Basin and the renegotiation of both oil and gas economics in Egypt, we have positioned our core producing portfolio to deliver steady and predictable production. We expect to run eight rigs in the Permian and 12 rigs in Egypt, leading to a slight increase year-over-year in Permian and adjusted Egypt volumes. This activity set translates to a combined development capital budget for Permian and Egypt of $2.2-$2.3 billion, 17% lower than 2024 development capital when adjusting for Callon’s first-quarter 2024 spend.”
Additionally, APA is undertaking significant cost reduction initiatives aimed at streamlining the business and improving operating practices. The company is targeting at least $350 million in sustainable annual savings by the end of 2027 across LOE, capital and overhead.
“Our cost reduction efforts follow the strategic realignment of our portfolio over the last few years. Our objective is to return our cost structure to a leading position by streamlining every aspect of the business while enhancing the predictability and delivery of our long-term plan. We are confident that our disciplined approach to capital allocation and rigorous cost management will underpin strong free cash flow growth over the next few years, which will be further bolstered by the GranMorgu project in Suriname, with first oil in 2028,” Christmann concluded.
Year-End 2024 Proved Reserves
Worldwide estimated proved reserves totaled 969 million BOE at year-end 2024, 69% of which were classified as proved developed.
Conference Call
APA will host a conference call to discuss its fourth-quarter and full-year 2024 results at 10 a.m. Central time, Thursday, Feb. 27. 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.
About APA
APA Corporation owns consolidated subsidiaries that explore for and produce oil and natural gas in the United States, Egypt and the United Kingdom and that explore for oil and natural gas offshore Suriname and elsewhere. APA posts announcements, operational updates, investor information and press releases on its website, www.apacorp.com.
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APA CORPORATION ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2024 FINANCIAL AND OPERATIONALRESULTS
Additional Information
Additional information follows, including reconciliations of adjusted earnings, adjusted EBITDAX, upstream capital investment, net debt, cash flows from operations before changes in operating assets and liabilities and free cash flow (non-GAAP financial measures) to GAAP measures and information regarding adjusted production. APA’s quarterly supplement is available at http://www.apacorp.com/financialdata.
Non-GAAP Financial Measures
APA’s financial information includes information prepared in conformity with generally accepted accounting principles (GAAP) as well as non-GAAP financial information. It is management’s intent to provide non-GAAP financial information to enhance understanding of our consolidated financial information as prepared in accordance with GAAP. Adjusted earnings, adjusted EBITDAX, upstream capital investment*,* net debt, cash flows from operations before changes in operating assets and liabilities and free cash flow are non-GAAP measures. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Each non-GAAP financial measure is presented along with the corresponding GAAP measure so as not to imply that more emphasis should be placed on the non-GAAP measure.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “continues,” “could,” “estimates,” “expects,” “goals,” “guidance,” “may,” “might,” “outlook,” “possibly,” “potential,” “projects,” “prospects,” “should,” “will,” “would,” and similar references to future periods, but the absence of these words does not mean that a statement is not forward-looking. These statements include, but are not limited to, statements about future plans, expectations, and objectives for operations, including statements about our capital plans, drilling plans, production expectations, asset sales, and monetizations. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results
Page 4 of 5
APA CORPORATION ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2024 FINANCIAL AND OPERATIONALRESULTS
and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See “Risk Factors” in APA’s Form 10-K for the year ended December 31, 2023, and in our quarterly reports on Form 10-Q (and in APA’s Form 10-K for the year ended December 31, 2024, when filed) for a discussion of risk factors that affect our business. Any forward-looking statement made in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. APA and its subsidiaries undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development or otherwise, except as may be required by law.
Cautionary Note to Investors
The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable, and possible reserves that meet the SEC’s definitions for such terms. APA may use certain terms in this news release, such as “resources,” “potential resources,” “resource potential,” “estimated net reserves,” “recoverable reserves,” and other similar terms that the SEC guidelines strictly prohibit APA from including in filings with the SEC. Such terms do not take into account the certainty of resource recovery, which is contingent on exploration success, technical improvements in drilling access, commerciality, and other factors, and are therefore not indicative of expected future resource recovery and should not be relied upon. Investors are urged to consider carefully the disclosure in APA’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2023 and in APA’s Form 10-K for the year ended December 31, 2024, when filed, available from APA at www.apacorp.com or by writing APA at: 2000 W. Sam Houston Pkwy S, Ste. 200, Houston, TX 77042 (Attn: Corporate Secretary). You can also obtain this report from the SEC by calling 1-800-SEC-0330 or from the SEC’s website at www.sec.gov.
Contacts
Investor: (281) 302-2286
Media: (713) 296-7276
Website: www.apacorp.com
APA-F
-end-
Page 5 of 5
APA CORPORATION
STATEMENT OF CONSOLIDATED OPERATIONS
(Unaudited)
(In millions, except per share data)
| For the Quarter Ended | For the Year Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, | December 31, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| REVENUES AND OTHER: | ||||||||||||
| Oil, natural gas, and natural gas liquids production revenues | ||||||||||||
| Oil revenues | $ | 1,830 | $ | 1,530 | $ | 6,966 | $ | 5,997 | ||||
| Natural gas revenues | 170 | 222 | 584 | 880 | ||||||||
| Natural gas liquids revenues | 189 | 133 | 646 | 508 | ||||||||
| 2,189 | 1,885 | 8,196 | 7,385 | |||||||||
| Purchased oil and gas sales | 523 | 282 | 1,541 | 894 | ||||||||
| Total revenues | 2,712 | 2,167 | 9,737 | 8,279 | ||||||||
| Derivative instrument gain (loss), net | 7 | (5 | ) | (10 | ) | 99 | ||||||
| Gain on divestitures, net | 5 | 1 | 289 | 8 | ||||||||
| Loss on previously sold Gulf of America properties | (190 | ) | (212 | ) | (273 | ) | (212 | ) | ||||
| Other, net | (32 | ) | (59 | ) | (6 | ) | 18 | |||||
| 2,502 | 1,892 | 9,737 | 8,192 | |||||||||
| OPERATING EXPENSES: | ||||||||||||
| Lease operating expenses | 474 | 360 | 1,690 | 1,436 | ||||||||
| Gathering, processing, and transmission | 104 | 89 | 432 | 334 | ||||||||
| Purchased oil and gas costs | 382 | 184 | 1,047 | 742 | ||||||||
| Taxes other than income | 65 | 44 | 270 | 207 | ||||||||
| Exploration | 65 | 51 | 313 | 195 | ||||||||
| General and administrative | 102 | 75 | 372 | 351 | ||||||||
| Transaction, reorganization, and separation | 12 | 4 | 168 | 15 | ||||||||
| Depreciation, depletion, and amortization: | ||||||||||||
| Oil and gas property and equipment | 646 | 414 | 2,235 | 1,500 | ||||||||
| Other assets | 7 | 9 | 31 | 40 | ||||||||
| Asset retirement obligation accretion | 36 | 30 | 148 | 116 | ||||||||
| Impairments | 18 | 15 | 1,129 | 61 | ||||||||
| Financing costs, net | 91 | 77 | 367 | 312 | ||||||||
| 2,002 | 1,352 | 8,202 | 5,309 | |||||||||
| NET INCOME BEFORE INCOME TAXES | 500 | 540 | 1,535 | 2,883 | ||||||||
| Current income tax provision | 308 | 316 | 1,153 | 1,338 | ||||||||
| Deferred income tax benefit | (233 | ) | (1,640 | ) | (736 | ) | (1,662 | ) | ||||
| NET INCOME INCLUDING NONCONTROLLING INTERESTS | 425 | 1,864 | 1,118 | 3,207 | ||||||||
| Net income attributable to noncontrolling interest | 71 | 91 | 314 | 352 | ||||||||
| NET INCOME ATTRIBUTABLE TO COMMON STOCK | $ | 354 | $ | 1,773 | $ | 804 | $ | 2,855 | ||||
| NET INCOME PER COMMON SHARE: | ||||||||||||
| Basic | $ | 0.96 | $ | 5.79 | $ | 2.28 | $ | 9.26 | ||||
| Diluted | $ | 0.96 | $ | 5.78 | $ | 2.27 | $ | 9.25 | ||||
| WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||||||
| Basic | 369 | 306 | 353 | 308 | ||||||||
| Diluted | 369 | 307 | 353 | 309 | ||||||||
| DIVIDENDS DECLARED PER COMMON SHARE | $ | 0.25 | $ | 0.25 | $ | 1.00 | $ | 1.00 |
Page 1
APA CORPORATION
PRODUCTION INFORMATION
| For the Quarter Ended | % Change | For the Year Ended | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, | September 30, | December 31, | 4Q24 to | 4Q24 to | December 31, | December 31, | ||||||||
| 2024 | 2024 | 2023 | 3Q24 | 4Q23 | 2024 | 2023 | ||||||||
| OIL VOLUME - Barrels per day | ||||||||||||||
| United States | 147,573 | 143,299 | 83,909 | 3% | 76% | 128,531 | 78,889 | |||||||
| Egypt ^(1, 2)^ | 89,927 | 91,673 | 92,365 | -2% | -3% | 89,027 | 89,129 | |||||||
| North Sea | 27,683 | 21,334 | 30,748 | 30% | -10% | 26,340 | 34,728 | |||||||
| International ^(1)^ | 117,610 | 113,007 | 123,113 | 4% | -4% | 115,367 | 123,857 | |||||||
| Total ^(1)^ | 265,183 | 256,306 | 207,022 | 3% | 28% | 243,898 | 202,746 | |||||||
| NATURAL GAS VOLUME - Mcf per day | ||||||||||||||
| United States | 511,587 | 467,615 | 462,498 | 9% | 11% | 483,446 | 452,281 | |||||||
| Egypt ^(1, 2)^ | 300,118 | 300,418 | 309,814 | 0% | -3% | 291,011 | 325,778 | |||||||
| North Sea | 36,842 | 18,911 | 58,054 | 95% | -37% | 39,986 | 50,284 | |||||||
| International ^(1)^ | 336,960 | 319,329 | 367,868 | 6% | -8% | 330,997 | 376,062 | |||||||
| Total ^(1)^ | 848,547 | 786,944 | 830,366 | 8% | 2% | 814,443 | 828,343 | |||||||
| NGL VOLUME - Barrels per day | ||||||||||||||
| United States | 80,390 | 79,474 | 67,679 | 1% | 19% | 73,877 | 62,997 | |||||||
| North Sea | 1,311 | 543 | 1,335 | 141% | -2% | 1,201 | 1,240 | |||||||
| Total ^(1)^ | 81,701 | 80,017 | 69,014 | 2% | 18% | 75,078 | 64,237 | |||||||
| BOE per day | ||||||||||||||
| United States | 313,227 | 300,709 | 228,671 | 4% | 37% | 282,983 | 217,266 | |||||||
| Egypt ^(1, 2)^ | 139,947 | 141,742 | 144,001 | -1% | -3% | 137,529 | 143,425 | |||||||
| North Sea | 35,134 | 25,029 | 41,758 | 40% | -16% | 34,204 | 44,349 | |||||||
| International ^(1)^ | 175,081 | 166,771 | 185,759 | 5% | -6% | 171,733 | 187,774 | |||||||
| Total ^(1)^ | 488,308 | 467,480 | 414,430 | 4% | 18% | 454,716 | 405,040 | |||||||
| Total excluding noncontrolling interests | 441,618 | 420,199 | 366,352 | 5% | 21% | 408,838 | 357,184 | |||||||
| ^(1)^ Includes net production<br>volumes attributed to our noncontrolling partner in Egypt below: | ||||||||||||||
| Oil (b/d) | 30,002 | 30,579 | 30,837 | 29,698 | 29,739 | |||||||||
| Gas (Mcf/d) | 100,127 | 100,210 | 103,443 | 97,078 | 108,703 | |||||||||
| BOE per day | 46,690 | 47,281 | 48,078 | 45,878 | 47,856 | |||||||||
| ^(2)^ Egypt Gross<br>Production | ||||||||||||||
| Oil (b/d) | 134,504 | 136,670 | 141,953 | 137,150 | 141,985 | |||||||||
| Gas (Mcf/d) | 438,052 | 447,173 | 466,403 | 443,551 | 500,080 | |||||||||
| BOE per day | 207,513 | 211,199 | 219,687 | 211,075 | 225,332 |
Page 2
APA CORPORATION
ADJUSTED PRODUCTION INFORMATION
Adjusted production excludes certain items that management believes affect the comparability of operating results for the periods presented. Adjusted production excludes production attributable to 1) noncontrolling interest in Egypt and 2) Egypt tax barrels. Management uses adjusted production to evaluate the company’s operational trends and performance and believes it is useful to investors and other third parties.
| For the Quarter Ended | % Change | For the Year Ended | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31,2024 | September 30,2024 | December 31,2023 | 4Q24 to3Q24 | 4Q24 to4Q23 | December 31,2024 | December 31,2023 | ||||||||
| OIL VOLUME - Barrels per day | ||||||||||||||
| United States | 147,573 | 143,299 | 83,909 | 3% | 76% | 128,531 | 78,889 | |||||||
| Egypt | 45,017 | 44,627 | 45,204 | 1% | 0% | 43,817 | 43,349 | |||||||
| North Sea | 27,683 | 21,334 | 30,748 | 30% | -10% | 26,340 | 34,728 | |||||||
| International | 72,700 | 65,961 | 75,952 | 10% | -4% | 70,157 | 78,077 | |||||||
| Total | 220,273 | 209,260 | 159,861 | 5% | 38% | 198,688 | 156,966 | |||||||
| NATURAL GAS VOLUME - Mcf per day | ||||||||||||||
| United States | 511,587 | 467,615 | 462,498 | 9% | 11% | 483,446 | 452,281 | |||||||
| Egypt | 149,816 | 145,190 | 150,212 | 3% | 0% | 142,363 | 157,269 | |||||||
| North Sea | 36,842 | 18,911 | 58,054 | 95% | -37% | 39,986 | 50,284 | |||||||
| International | 186,658 | 164,101 | 208,266 | 14% | -10% | 182,349 | 207,553 | |||||||
| Total | 698,245 | 631,716 | 670,764 | 11% | 4% | 665,795 | 659,834 | |||||||
| NGL VOLUME - Barrels per day | ||||||||||||||
| United States | 80,390 | 79,474 | 67,679 | 1% | 19% | 73,877 | 62,997 | |||||||
| North Sea | 1,311 | 543 | 1,335 | 141% | -2% | 1,201 | 1,240 | |||||||
| Total | 81,701 | 80,017 | 69,014 | 2% | 18% | 75,078 | 64,237 | |||||||
| BOE per day | ||||||||||||||
| United States | 313,227 | 300,709 | 228,671 | 4% | 37% | 282,983 | 217,266 | |||||||
| Egypt | 69,986 | 68,825 | 70,239 | 2% | 0% | 67,544 | 69,561 | |||||||
| North Sea | 35,134 | 25,029 | 41,758 | 40% | -16% | 34,204 | 44,349 | |||||||
| International | 105,120 | 93,854 | 111,997 | 12% | -6% | 101,748 | 113,910 | |||||||
| Total | 418,347 | 394,563 | 340,668 | 6% | 23% | 384,731 | 331,176 |
Page 3
APA CORPORATION
PRICE INFORMATION
| For the Quarter Ended | For the Year Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||
| AVERAGE OIL PRICE PER BARREL | ||||||||||
| United States | $ | 70.38 | $ | 76.34 | $ | 79.04 | $ | 75.92 | $ | 77.84 |
| Egypt | 74.54 | 79.88 | 83.67 | 80.41 | 82.47 | |||||
| North Sea | 75.42 | 83.36 | 80.70 | 80.74 | 82.75 | |||||
| International | 74.80 | 80.38 | 82.98 | 80.48 | 82.55 | |||||
| Total | 72.42 | 78.06 | 81.36 | 78.08 | 80.72 | |||||
| AVERAGE NATURAL GAS PRICE PER MCF | ||||||||||
| United States | $ | 1.01 | $ | 0.16 | $ | 1.62 | $ | 0.71 | $ | 1.80 |
| Egypt | 2.97 | 2.93 | 2.89 | 2.94 | 2.91 | |||||
| North Sea | 14.40 | 9.76 | 13.46 | 10.84 | 13.02 | |||||
| International | 4.03 | 3.30 | 4.56 | 3.82 | 4.25 | |||||
| Total | 2.20 | 1.43 | 2.92 | 1.97 | 2.91 | |||||
| AVERAGE NGL PRICE PER BARREL | ||||||||||
| United States | $ | 24.52 | $ | 20.91 | $ | 19.82 | $ | 22.83 | $ | 20.85 |
| North Sea | 50.65 | 45.93 | 48.16 | 47.59 | 47.77 | |||||
| Total | 25.08 | 21.29 | 20.70 | 23.37 | 21.54 |
Page 4
APA CORPORATION
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
(In millions)
SUMMARY EXPLORATION EXPENSE INFORMATION
| For the Quarter Ended | For the Year Ended | |||||||
|---|---|---|---|---|---|---|---|---|
| December 31, | December 31, | |||||||
| 2024 | 2023 | 2024 | 2023 | |||||
| Unproved leasehold impairments | $ | 24 | $ | 2 | $ | 35 | $ | 22 |
| Dry hole expense | 29 | 21 | 201 | 92 | ||||
| Geological and geophysical expense | — | 16 | 21 | 19 | ||||
| Exploration overhead and other | 12 | 12 | 56 | 62 | ||||
| $ | 65 | $ | 51 | $ | 313 | $ | 195 |
SUMMARY CASH FLOW INFORMATION
| For the Quarter Ended | For the Year Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, | December 31, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Net cash provided by operating activities | $ | 1,036 | $ | 1,030 | $ | 3,620 | $ | 3,129 | ||||
| Additions to upstream oil and gas property | (698 | ) | (575 | ) | (2,851 | ) | (2,313 | ) | ||||
| Leasehold and property acquisitions | 4 | — | (60 | ) | (44 | ) | ||||||
| Proceeds from asset divestitures | 885 | — | 1,609 | 29 | ||||||||
| Proceeds from sale of Kinetik shares | — | 228 | 428 | 228 | ||||||||
| Other, net | (108 | ) | (9 | ) | (50 | ) | (38 | ) | ||||
| Net cash provided by (used in) investing activities | $ | 83 | $ | (356 | ) | $ | (924 | ) | $ | (2,138 | ) | |
| Payments on commercial paper and revolving credit facilities, net | (230 | ) | (396 | ) | (40 | ) | (194 | ) | ||||
| Proceeds from term loan facility | — | — | 1,500 | — | ||||||||
| Payments on term loan facility | (100 | ) | — | (600 | ) | — | ||||||
| Payment on Callon Credit Agreement | — | — | (472 | ) | — | |||||||
| Payments on fixed-rate debt | — | — | (1,641 | ) | (65 | ) | ||||||
| Distributions to noncontrolling interest | (35 | ) | (84 | ) | (268 | ) | (238 | ) | ||||
| Treasury stock activity, net | (100 | ) | (121 | ) | (246 | ) | (329 | ) | ||||
| Dividends paid to APA common stockholders | (93 | ) | (76 | ) | (353 | ) | (308 | ) | ||||
| Other, net | — | (5 | ) | (38 | ) | (15 | ) | |||||
| Net cash used in financing activities | $ | (558 | ) | $ | (682 | ) | $ | (2,158 | ) | $ | (1,149 | ) |
SUMMARY BALANCE SHEET INFORMATION
| December 31, | December 31, | |||
|---|---|---|---|---|
| 2024 | 2023 | |||
| Cash and cash equivalents | $ | 625 | $ | 87 |
| Other current assets | 2,779 | 2,375 | ||
| Property and equipment, net | 12,646 | 10,038 | ||
| Decommissioning security for sold Gulf of America properties | 21 | 21 | ||
| Other assets | 3,319 | 2,723 | ||
| Total assets | $ | 19,390 | $ | 15,244 |
| Current debt | $ | 53 | $ | 2 |
| Current liabilities | 2,902 | 2,402 | ||
| Long-term debt | 5,991 | 5,186 | ||
| Decommissioning contingency for sold Gulf of America properties | 929 | 764 | ||
| Deferred credits and other noncurrent liabilities | 3,153 | 3,199 | ||
| APA shareholders’ equity | 5,280 | 2,655 | ||
| Noncontrolling interest | 1,082 | 1,036 | ||
| Total Liabilities and equity | $ | 19,390 | $ | 15,244 |
| Common shares outstanding at end of period | 365 | 304 |
Page 5
APA CORPORATION
NON-GAAP FINANCIAL MEASURES
(In millions, except per share data)
Reconciliation of Costs incurred to Upstream capital investment
Management believes the presentation of upstream capital investments is useful for investors to assess APA’s expenditures related to our upstream capital activity. We define capital investments as costs incurred for oil and gas activities, adjusted to exclude property acquisitions, asset retirement obligation revisions and liabilities incurred, capitalized interest, and certain exploration expenses, while including amounts paid during the period for abandonment and decommissioning expenditures. Upstream capital expenditures attributable to a one-third noncontrolling interest in Egypt are also excluded. Management believes this provides a more accurate reflection of APA’s cash expenditures related to upstream capital activity and is consistent with how we plan our capital budget.
| For the Quarter Ended | For the Year Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, | December 31, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Costs incurred in oil and gas property: | ||||||||||||
| Asset and leasehold acquisitions | $ | 10 | $ | 10 | $ | 4,564 | $ | 25 | ||||
| Exploration and development | 752 | 969 | 3,298 | 2,694 | ||||||||
| Total Costs incurred in oil and gas property | $ | 762 | $ | 979 | $ | 7,862 | $ | 2,719 | ||||
| Reconciliation of Costs incurred to Upstream capital investment: | ||||||||||||
| Total Costs incurred in oil and gas property | $ | 762 | $ | 979 | $ | 7,862 | $ | 2,719 | ||||
| Property acquisitions | (12 | ) | — | (4,562 | ) | (1 | ) | |||||
| Asset retirement obligations settled vs. incurred - oil and gas property | (81 | ) | (347 | ) | (244 | ) | (327 | ) | ||||
| Capitalized interest | (7 | ) | (6 | ) | (29 | ) | (24 | ) | ||||
| Exploration seismic and administration costs | (12 | ) | (28 | ) | (77 | ) | (81 | ) | ||||
| Upstream capital investment including noncontrolling interest - Egypt | $ | 650 | $ | 598 | $ | 2,950 | $ | 2,286 | ||||
| Less noncontrolling interest - Egypt | (58 | ) | (78 | ) | (253 | ) | (281 | ) | ||||
| Total Upstream capital investment | $ | 592 | $ | 520 | $ | 2,697 | $ | 2,005 |
Reconciliation of Net cash provided by operating activities to Cash flows from operations before changes in operatingassets and liabilities and Free cash flow
Cash flows from operations before changes in operating assets and liabilities and free cash flow are non-GAAP financial measures. APA uses these measures internally and provides this information because management believes it is useful in evaluating the company’s ability to generate cash to internally fund exploration and development activities, fund dividend programs, and service debt, as well as to compare our results from period to period. We believe these measures are also used by research analysts and investors to value and compare oil and gas exploration and production companies and are frequently included in published research reports when providing investment recommendations. Cash flows from operations before changes in operating assets and liabilities and free cash flow are additional measures of liquidity but are not measures of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing, or financing activities. Additionally, this presentation of free cash flow may not be comparable to similar measures presented by other companies in our industry.
| For the Quarter Ended | For the Year Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, | December 31, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Net cash provided by operating activities | $ | 1,036 | $ | 1,030 | $ | 3,620 | $ | 3,129 | ||||
| Changes in operating assets and liabilities | 107 | (23 | ) | 535 | 417 | |||||||
| Cash flows from operations before changes in operating assets and liabilities | $ | 1,143 | $ | 1,007 | $ | 4,155 | $ | 3,546 | ||||
| Adjustments to free cash flow: | ||||||||||||
| Upstream capital investment including noncontrolling interest—Egypt | (650 | ) | (598 | ) | (2,950 | ) | (2,286 | ) | ||||
| Decommissioning spend on previously sold Gulf of America properties | (24 | ) | — | (63 | ) | — | ||||||
| Non oil and gas capital investment | (14 | ) | (33 | ) | (33 | ) | (57 | ) | ||||
| Distributions to Sinopec noncontrolling interest | (35 | ) | (84 | ) | (268 | ) | (238 | ) | ||||
| Free cash flow | $ | 420 | $ | 292 | $ | 841 | $ | 965 |
Reconciliation of Net cash provided by operating activities to Adjusted EBITDAX
Management believes EBITDAX, or earnings before income tax expense, interest expense, depreciation, amortization and exploration expense is a widely accepted financial indicator, and useful for investors, to assess a company’s ability to incur and service debt, fund capital expenditures, and make distributions to shareholders. We define adjusted EBITDAX, a non-GAAP financial measure, as EBITDAX adjusted for certain items presented in the accompanying reconciliation. Management uses adjusted EBITDAX to evaluate our ability to fund our capital expenditures, debt services and other operational requirements and to compare our results from period to period by eliminating the impact of certain items that management does not consider to be representative of the Company’s on-going operations. Management also believes adjusted EBITDAX facilitates investors and analysts in evaluating and comparing EBITDAX from period to period by eliminating differences caused by the existence and timing of certain operating expenses that would not otherwise be apparent on a GAAP basis. However, our presentation of adjusted EBITDAX may not be comparable to similar measures of other companies in our industry.
| For the Quarter Ended | For the Year Ended | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, | September 30, | December 31, | December 31, | ||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net cash provided by operating activities | $ | 1,036 | $ | 1,339 | $ | 1,030 | $ | 3,620 | $ | 3,129 | |||||
| Adjustments: | |||||||||||||||
| Exploration expense other than dry hole expense and unproved leasehold impairments | 12 | 20 | 28 | 77 | 81 | ||||||||||
| Current income tax provision | 308 | 260 | 316 | 1,153 | 1,338 | ||||||||||
| Other adjustments to reconcile net income to net cash provided by operating activities | (16 | ) | 45 | (71 | ) | (2 | ) | (26 | ) | ||||||
| Changes in operating assets and liabilities | 107 | (221 | ) | (23 | ) | 535 | 417 | ||||||||
| Financing costs, net | 91 | 100 | 77 | 367 | 321 | ||||||||||
| Transaction, reorganization & separation costs | 12 | 14 | 4 | 168 | 15 | ||||||||||
| Adjusted EBITDAX (Non-GAAP) | $ | 1,550 | $ | 1,557 | $ | 1,361 | $ | 5,918 | $ | 5,275 |
Page 6
APA CORPORATION
NON-GAAP FINANCIAL MEASURES
(In millions)
Reconciliation of debt tonet debt
Net debt, or outstanding debt obligations less cash and cash equivalents, is a non-GAAP financial measure. Management uses net debt as a measure of the Company’s outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand.
| December 31, | September 30, | June 30, | March 31, | |||||
|---|---|---|---|---|---|---|---|---|
| 2024 | 2024 | 2024 | 2024 | |||||
| Current debt | $ | 53 | $ | 2 | $ | 2 | $ | 2 |
| Long-term debt | 5,991 | 6,370 | 6,741 | 5,178 | ||||
| Total debt | 6,044 | 6,372 | 6,743 | 5,180 | ||||
| Cash and cash equivalents | 625 | 64 | 160 | 102 | ||||
| Net debt | $ | 5,419 | $ | 6,308 | $ | 6,583 | $ | 5,078 |
Reconciliation of Income attributable to common stock to Adjusted earnings
Our presentation of adjusted earnings and adjusted earnings per share are non-GAAP measures because they exclude the effect of certain items included in Income Attributable to Common Stock. Management believes that adjusted earnings and adjusted earnings per share provides relevant and useful information, which is widely used by analysts, investors and competitors in our industry as well as by our management in assessing the Company’s operational trends and comparability of results to our peers.
Management uses adjusted earnings and adjusted earnings per share to evaluate our operating and financial performance because it eliminates the impact of certain items that management does not consider to be representative of the Company’s on-going business operations. As a performance measure, adjusted earnings may be useful to investors in facilitating comparisons to others in the Company’s industry because certain items can vary substantially in the oil and gas industry from company to company depending upon accounting methods, book value of assets, capital structure and asset sales and other divestitures, among other factors. Management believes excluding these items facilitates investors and analysts in evaluating and comparing the underlying operating and financial performance of our business from period to period by eliminating differences caused by the existence and timing of certain expense and income items that would not otherwise be apparent on a GAAP basis. However, our presentation of adjusted earnings and adjusted earnings per share may not be comparable to similar measures of other companies in our industry.
| For the Quarter Ended | For the Quarter Ended | |||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, 2024 | December 31, 2023 | |||||||||||||||||||||||
| Before | Tax | After | Diluted | Before | Tax | After | Diluted | |||||||||||||||||
| Tax | Impact | Tax | EPS | Tax | Impact | Tax | EPS | |||||||||||||||||
| Net income including noncontrolling interests (GAAP) | $ | 500 | $ | (75 | ) | $ | 425 | $ | 1.15 | $ | 540 | $ | 1,324 | $ | 1,864 | $ | 6.08 | |||||||
| Income attributable to noncontrolling interests | 129 | (58 | ) | 71 | 0.19 | 163 | (72 | ) | 91 | 0.30 | ||||||||||||||
| Net income attributable to common stock | 371 | (17 | ) | 354 | 0.96 | 377 | 1,396 | 1,773 | 5.78 | |||||||||||||||
| Adjustments: * | ||||||||||||||||||||||||
| Asset and unproved leasehold impairments | 42 | (16 | ) | 26 | 0.07 | 17 | (4 | ) | 13 | 0.04 | ||||||||||||||
| Valuation allowance and EPL revaluation | — | (11 | ) | (11 | ) | (0.03 | ) | — | (1,634 | ) | (1,634 | ) | (5.33 | ) | ||||||||||
| Other tax adjustments | — | (224 | ) | (224 | ) | (0.61 | ) | — | — | — | — | |||||||||||||
| Unrealized derivative instrument (gain) loss | (10 | ) | 2 | (8 | ) | (0.02 | ) | 10 | (2 | ) | 8 | 0.03 | ||||||||||||
| Loss on previously sold Gulf of America properties | 190 | (42 | ) | 148 | 0.40 | 212 | (45 | ) | 167 | 0.54 | ||||||||||||||
| Kinetik equity investment<br>mark-to-market loss | — | — | — | — | 29 | (6 | ) | 23 | 0.08 | |||||||||||||||
| Transaction, reorganization & separation costs | 12 | (3 | ) | 9 | 0.03 | 4 | (2 | ) | 2 | 0.01 | ||||||||||||||
| Gain on divestitures, net | (5 | ) | 1 | (4 | ) | (0.01 | ) | (1 | ) | 1 | — | — | ||||||||||||
| Adjusted earnings (Non-GAAP) | $ | 600 | $ | (310 | ) | $ | 290 | $ | 0.79 | $ | 648 | $ | (296 | ) | $ | 352 | $ | 1.15 | ||||||
| For the Year Ended | For the Year Ended | |||||||||||||||||||||||
| December 31, 2024 | December 31, 2023 | |||||||||||||||||||||||
| Before | Tax | After | Diluted | Before | Tax | After | Diluted | |||||||||||||||||
| Tax | Impact | Tax | EPS | Tax | Impact | Tax | EPS | |||||||||||||||||
| Net income including noncontrolling interests (GAAP) | $ | 1,535 | $ | (417 | ) | $ | 1,118 | $ | 3.16 | $ | 2,883 | $ | 324 | $ | 3,207 | $ | 10.39 | |||||||
| Income attributable to noncontrolling interests | 570 | (256 | ) | 314 | 0.89 | 628 | (276 | ) | 352 | 1.14 | ||||||||||||||
| Net income attributable to common stock | 965 | (161 | ) | 804 | 2.27 | 2,255 | 600 | 2,855 | 9.25 | |||||||||||||||
| Adjustments: * | ||||||||||||||||||||||||
| Asset and unproved leasehold impairments | 1,164 | (558 | ) | 606 | 1.71 | 83 | (50 | ) | 33 | 0.11 | ||||||||||||||
| Valuation allowance and EPL revaluation | — | 5 | 5 | 0.02 | — | (1,627 | ) | (1,627 | ) | (5.27 | ) | |||||||||||||
| Other tax adjustments | — | (224 | ) | (224 | ) | (0.63 | ) | — | — | — | — | |||||||||||||
| Gain on extinguishment of debt | — | — | — | — | (9 | ) | 2 | (7 | ) | (0.02 | ) | |||||||||||||
| Unrealized derivative instrument (gain) loss | 8 | (2 | ) | 6 | 0.02 | (51 | ) | 11 | (40 | ) | (0.13 | ) | ||||||||||||
| Loss on previously sold Gulf of America properties | 273 | (60 | ) | 213 | 0.60 | 212 | (45 | ) | 167 | 0.54 | ||||||||||||||
| Kinetik equity investment<br>mark-to-market loss | 9 | — | 9 | 0.03 | 12 | (2 | ) | 10 | 0.03 | |||||||||||||||
| Drilling contract termination charges | — | — | — | — | 13 | (10 | ) | 3 | 0.01 | |||||||||||||||
| Transaction, reorganization & separation costs | 168 | (30 | ) | 138 | 0.39 | 15 | (5 | ) | 10 | 0.03 | ||||||||||||||
| Gain on divestitures, net | (289 | ) | 63 | (226 | ) | (0.64 | ) | (8 | ) | 2 | (6 | ) | (0.02 | ) | ||||||||||
| Adjusted Earnings (Non-GAAP) | $ | 2,298 | $ | (967 | ) | $ | 1,331 | $ | 3.77 | $ | 2,522 | $ | (1,124 | ) | $ | 1,398 | $ | 4.53 | ||||||
| * | The income tax effect of the reconciling items are calculated based on the statutory rate of the jurisdiction<br>in which the discrete item resides. | |||||||||||||||||||||||
| --- | --- |
Page 7
APA CORPORATION
OIL & GAS RESERVES INFORMATION
For the Year Ended December 31, 2024
| OIL (Mbbl) | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| U.S. | Egypt^1^ | North Sea | Suiname | Total^1^ | ||||||||||
| Balance - Dec 31, 2023 | 210,490 | 107,559 | 61,076 | — | 379,125 | |||||||||
| Extensions and Discoveries | 100,778 | 18,115 | — | 73,637 | 192,530 | |||||||||
| Purchases | 124,112 | — | — | — | 124,112 | |||||||||
| Revisions | (9,642 | ) | 10,521 | (21,000 | ) | — | (20,121 | ) | ||||||
| Production | (47,043 | ) | (32,584 | ) | (9,640 | ) | — | (89,267 | ) | |||||
| Sales | (86,668 | ) | — | — | — | (86,668 | ) | |||||||
| Balance - Dec 31, 2024 | 292,027 | 103,611 | 30,436 | 73,637 | 499,711 | |||||||||
| NGL’s (Mbbl) | ||||||||||||||
| U.S. | Egypt^1^ | North Sea | Suiname | Total^1^ | ||||||||||
| Balance - Dec 31, 2023 | 171,887 | — | 1,460 | — | 173,347 | |||||||||
| Extensions and Discoveries | 62,988 | — | — | — | 62,988 | |||||||||
| Purchases | 51,406 | — | — | — | 51,406 | |||||||||
| Revisions | (20,167 | ) | — | (277 | ) | — | (20,444 | ) | ||||||
| Production | (27,039 | ) | — | (439 | ) | — | (27,478 | ) | ||||||
| Sales | (30,878 | ) | — | — | — | (30,878 | ) | |||||||
| Balance - Dec 31, 2024 | 208,197 | — | 744 | — | 208,941 | |||||||||
| GAS (MMcf) | ||||||||||||||
| U.S. | Egypt^1^ | North Sea | Suiname | Total^1^ | ||||||||||
| Balance - Dec 31, 2023 | 1,103,451 | 379,756 | 46,839 | — | 1,530,046 | |||||||||
| Extensions and Discoveries | 354,267 | 60,366 | — | — | 414,633 | |||||||||
| Purchases | 279,615 | — | — | — | 279,615 | |||||||||
| Revisions | (224,118 | ) | 26,792 | (4,176 | ) | — | (201,502 | ) | ||||||
| Production | (176,941 | ) | (106,510 | ) | (14,635 | ) | — | (298,086 | ) | |||||
| Sales | (162,039 | ) | — | — | — | (162,039 | ) | |||||||
| Balance - Dec 31, 2024 | 1,174,235 | 360,404 | 28,028 | — | 1,562,667 | |||||||||
| TOTAL BOE (Mboe) | ||||||||||||||
| U.S. | Egypt^1^ | North Sea | Suiname | Total^1^ | ||||||||||
| Balance - Dec 31, 2023 | 566,285 | 170,852 | 70,343 | — | 807,480 | |||||||||
| Extensions and Discoveries | 222,811 | 28,176 | — | 73,637 | 324,624 | |||||||||
| Purchases | 222,121 | — | — | — | 222,121 | |||||||||
| Revisions | (67,162 | ) | 14,986 | (21,973 | ) | — | (74,149 | ) | ||||||
| Production | (103,572 | ) | (50,336 | ) | (12,518 | ) | — | (166,426 | ) | |||||
| Sales | (144,553 | ) | — | — | — | (144,553 | ) | |||||||
| Balance - Dec 31, 2024 | 695,930 | 163,678 | 35,852 | 73,637 | 969,097 | |||||||||
| Proved developed reserves: | ||||||||||||||
| Oil (Mbbls) | 184,744 | 95,990 | 30,436 | — | 311,170 | |||||||||
| NGL’s (Mbbls) | 153,523 | — | 744 | — | 154,267 | |||||||||
| Gas (Mboe) | 144,410 | 55,484 | 4,672 | — | 204,566 | |||||||||
| Balance - Dec 31, 2024 (Mboe) | 482,677 | 151,474 | 35,852 | — | 670,003 | |||||||||
| ^(1)^ | Includes reserves attributable to noncontrolling interest in Egypt. | |||||||||||||
| --- | --- |
Page 8