APA Corp (APA) Announces Q3 2023 Earnings: Net Income Rises to $459 Million

Strong well performance in the Permian Basin and increased global oil production contribute to positive results

  • APA Corp (APA) reports Q3 2023 net income of $459 million, or $1.49 per diluted share
  • Adjusted earnings for the quarter were $410 million, or $1.33 per diluted share
  • Net cash provided by operating activities was $764 million, with free cash flow of $307 million
  • Adjusted global oil production exceeded guidance range, increasing by 20% year over year
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On November 2, 2023, APA Corp (APA, Financial) released its financial and operational results for the third quarter of 2023. The company reported a net income attributable to common stock of $459 million, or $1.49 per diluted share. When adjusted for items impacting comparability, APA's Q3 earnings were $410 million, or $1.33 per diluted share. Net cash provided by operating activities amounted to $764 million, and adjusted EBITDAX was $1.4 billion. The company generated $307 million in free cash flow during the quarter.

Operational Highlights

APA Corp (APA, Financial) reported strong well performance in the Permian Basin as a primary driver of its Q3 results. Adjusted global oil production exceeded the high-end of the company's guidance range and was up by 20% year over year. In Suriname, appraisal efforts delivered a positive outcome, confirming estimated recoverable oil resources of 700 million barrels for Sapakara and Krabdagu.

Production and Financial Results

Third-quarter reported production was 412,000 BOE per day. Adjusted production, excluding Egypt noncontrolling interest and tax barrels, was 340,000 BOE per day. APA delivered sequential quarterly oil growth in each of its operating areas. Total oil volumes increased by 5%, led by 10% growth in the U.S. In Egypt, gross oil production increased by 3%, and in the North Sea, oil production was up 2%.

Upcoming Plans and Guidance

For the fourth quarter of 2023, APA expects total production to be slightly down from the third quarter, due to facility downtime in the North Sea and a decline in natural gas volumes across the portfolio. The company's upstream capital investment in the fourth quarter is expected to be approximately $500 million, reflecting increased activity in the Permian Basin.

ESG Progress

APA has made significant progress on its environmental, social, and governance goals, recently achieving a key 2023 target to convert more than 2,000 methane-emitting pneumatic devices to air-driven or non-venting valves, thereby reducing methane emissions.

Financial Tables

The full release includes detailed financial tables, including the Statement of Consolidated Operations, Production Information, Adjusted Production Information, Price Information, Supplemental Financial Information, and Non-GAAP Financial Measures. These tables provide a comprehensive overview of APA's financial performance for the quarter.

For more detailed information, please visit the APA Corporation's financial data page.

Explore the complete 8-K earnings release (here) from APA Corp for further details.