NASDAQ$APA

APA Corporation · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

APA Corporation reported strong second-quarter results driven by high prices and effective cost management.

APA Corporation announced strong second-quarter results with net income attributable to common stock of $926 million, or $2.71 per diluted share. Adjusted earnings were $811 million, or $2.37 per diluted share. The company generated $1.535 billion in net cash from operating activities and $814 million in free cash flow.

  • Reported production of 385,000 barrels of oil equivalent (BOE) per day; adjusted production was 305,000 BOE per day.
  • Generated net cash from operating activities of $1.535 billion, adjusted EBITDAX of $1.957 billion, and quarterly free cash flow of $814 million.
  • Repurchased 7 million shares of APA common stock during the quarter at an average price of $41.59 per share.
  • Increased gross oil production in Egypt and continued significant emissions reductions in the Western Desert.

Headline financials

Total Revenue

$3.05B

Previous: $0.00
EPS (adj)

$2.37

Previous: $0.70+238.6%
Adjusted EBITDAX

$1.96B

Previous: $1.01B+93.8%
Free Cash Flow

$814M

Previous: $396M+105.6%
Net Income

$926M

Previous: $408M+127.0%
Operating Income

$1.46B

Previous: $666M+119.5%
Cash & Equivalents

$282M

Previous: $1.25B-77.4%
Total Assets

$12.9B

Previous: $13.5B-4.4%

Revenue & EPS history

APA · Revenue · Quarterly

$3.05B

Q2 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

APA expects production to increase in the back half of the year as drilling programs in Egypt and the Permian Basin progress, maintenance turnarounds conclude, and the Garten-3 well commences production in the North Sea. If recent strip prices hold, the company expects to generate approximately $3 billion of free cash flow in 2022, and by yearend, at least $1.8 billion of this capital will be returned to shareholders through dividends and share buybacks.

Tailwinds

  • Drilling program in Egypt reaches 15 rigs and efficiency levels improve
  • Rate of well completions increases in the Permian Basin
  • Summer maintenance turnarounds conclude
  • Garten-3 well commences production in the North Sea
  • Expect to generate approximately $3 billion of free cash flow in 2022

Headwinds

  • No specific negatives were mentioned about the forward guidance.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-0.3%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+3.8%

Avg return

30 days after

47%

30 / 64 earnings

Positive

+20.2%

Q2 2020

Best reaction

-14.6%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-7.7%-11.5%-11.8%
Q4 2025+0.0%+14.4%+59.4%
Q3 2025+9.1%+13.5%+25.1%
Q2 2025+8.0%+13.2%+26.0%
Q1 2025+4.5%+19.3%+19.5%
Q4 2024-7.2%-15.6%-5.0%
Q3 2024-7.0%-5.9%-9.1%
Q1 2024-7.2%-4.8%-2.9%
Q4 2023-2.5%-4.4%+8.0%
Q3 2023-0.1%-1.1%-8.9%
Q2 2023+3.5%+4.8%+12.0%
Q1 2023-6.1%-3.7%-2.0%
Q4 2022+2.8%+3.1%-9.3%
Q3 2022+3.3%+8.1%+2.9%
Q2 2022-14.6%-10.4%+8.0%
Q1 2022-2.9%-11.7%+13.6%
Q4 2021-3.5%+4.7%+26.6%
Q3 2021+6.6%+12.3%-6.3%
Q2 2021-3.8%-4.6%+4.7%
Q1 2021+6.2%+8.5%+16.1%
Q4 2020+1.9%-1.2%-4.9%
Q3 2020+2.7%+11.7%+73.9%
Q2 2020+20.2%+18.0%+13.0%
Q1 2020+0.8%+2.1%+36.4%
Q4 2019-1.7%+0.1%-80.9%
Q3 2019-1.8%+11.2%+1.0%
Q2 2019+0.1%-3.5%-10.5%
Q1 2019-9.5%-6.5%-20.8%
Q4 2018+0.3%+1.8%+4.7%
Q3 2018-2.8%+0.3%-6.2%
Q2 2018-3.5%-0.8%-4.7%
Q1 2018-4.7%-2.4%-3.7%
Q4 2017-2.9%-6.5%-0.5%
Q3 2017+1.2%+7.0%+4.7%
Q2 2017-5.6%-7.9%-17.6%
Q1 2017+1.0%+3.4%-3.7%
Q4 2016-2.7%-4.2%-8.5%
Q3 2016-5.6%-4.3%+9.5%
Q2 2016-4.0%-2.9%-0.9%
Q1 2016+6.1%
Q4 2015+2.3%
Q3 2015-3.5%
Q2 2015+3.8%
Q1 2015-2.7%
Q4 2014+3.6%
Q3 2014+1.3%
Q2 2014-1.0%
Q1 2014+1.3%
Q4 2013+2.6%
Q3 2013+1.5%
Q2 2013+2.2%
Q1 2013+7.2%
Q4 2012-2.1%
Q3 2012-4.7%
Q2 2012+2.7%
Q1 2012-0.8%
Q4 2011-0.4%
Q3 2011-1.7%
Q2 2011-4.3%
Q1 2011+3.0%
Q4 2010-2.2%
Q3 2010+0.7%
Q2 2010-1.4%
Q1 2010+2.4%

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