NASDAQ$APA

APA Corporation · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

APA's financial performance was solid, driven by strong Permian Basin execution and well performance.

APA Corporation reported a net income attributable to common stock of $1.8 billion, or $5.78 per share, for the fourth quarter of 2023. Adjusted earnings were $352 million, or $1.15 per share. The company's reported fourth-quarter production was 414,000 BOE per day, while adjusted production was 341,000 BOE per day. Net cash provided by operating activities was $1.0 billion, and adjusted EBITDAX was $1.4 billion.

  • APA reported net income attributable to common stock of $1.8 billion, or $5.78 per share, on a fully diluted basis.
  • Adjusted fourth-quarter earnings totaled $352 million or $1.15 on a diluted share basis.
  • Reported fourth-quarter production was 414,000 BOE per day; adjusted production was 341,000 BOE per day.
  • Net cash provided by operating activities in the fourth quarter was $1.0 billion, and adjusted EBITDAX was $1.4 billion.

Headline financials

Total Revenue

$2.17B

Previous: $2.38B-8.9%
EPS (adj)

$1.15

Previous: $1.48-22.3%
Adjusted EBITDAX

$1.4B

Previous: $1.5B-6.7%
Capital Expenditures

-$575M

No prior period
Net Income

$1.86B

Previous: $443M+320.8%
Operating Income

$911M

Previous: $802M+13.6%
Gross Profit

$1.03B

No prior period

Revenue & EPS history

APA · Revenue · Quarterly

$2.17B

Q4 2023-8.9%vs Q4 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

In 2024, APA plans to invest $1.9 to $2.0 billion in upstream oil and gas capital. Total company adjusted oil and natural gas production is expected to be relatively flat year-over-year while NGL volumes are anticipated to be lower as the current strip prices would lead to ethane rejection in the U.S. for most of the year.

Tailwinds

  • Planning upstream capital budget of $1.9 to $2.0 billion.
  • Investing to sustain production on a year-over-year basis.
  • Forecasting strong U.S. oil growth in 2024, approximately 8% year-over-year and more than 10% from fourth-quarter 2023 to fourth-quarter 2024.
  • Pending acquisition of Callon Petroleum Company adds scale to APA’s existing Delaware Basin assets and is expected to be accretive to key financial metrics.
  • Committing to return at least 60% of FCF to shareholders.

Headwinds

  • Potential for lower year-over-year commodity prices.
  • Prudently manage costs and high-grade capital to our most strategic opportunities.
  • Total company adjusted oil and natural gas production is expected to be relatively flat year-over-year.
  • NGL volumes are anticipated to be lower as the current strip prices would lead to ethane rejection in the U.S. for most of the year.
  • Moderating activity levels during periods of lower commodity prices.

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 Q4 2023

Historical avgQ4 2023

-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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