On April 9, 2025, APA Corp (APA, Financial) released supplemental information regarding its anticipated financial and operational results for the first quarter of 2025. The company provided estimated average realized prices for oil, natural gas liquids (NGL), and natural gas, along with updates on production curtailments and share repurchases. This information aims to assist investors and analysts in forming their own estimates, although actual results may vary due to other factors not identified in the release.
Positive Aspects
- International oil prices are estimated at $75.10 per barrel, higher than U.S. prices.
- APA reported a net gain of $120 million on oil and gas purchases and sales before tax.
- The company repurchased 4.4 million shares, potentially enhancing shareholder value.
Negative Aspects
- APA curtailed 8 MMcf/d of U.S. natural gas production due to weak or negative Waha hub prices.
- Dry hole costs amounted to $12 million before tax.
- No realized gain on commodity derivatives was reported for the quarter.
Financial Analyst Perspective
From a financial analyst's viewpoint, APA Corp's decision to provide supplemental information reflects a proactive approach to managing investor expectations. The estimated realized prices indicate a favorable international market for oil, which could bolster revenue. However, the curtailment of U.S. natural gas production due to unfavorable pricing highlights potential vulnerabilities in domestic operations. The share repurchase program suggests confidence in the company's valuation, which could be a positive signal to investors.
Market Research Analyst Perspective
As a market research analyst, the data provided by APA Corp suggests a strategic focus on optimizing international operations, where higher realized prices are evident. The curtailment of production in response to market conditions demonstrates adaptability, though it also underscores the challenges faced in the U.S. market. The absence of gains from commodity derivatives may indicate a cautious approach to hedging strategies. Overall, APA's actions reflect a balanced approach to navigating market volatility while maintaining shareholder value through buybacks.
Frequently Asked Questions
Q: What are the estimated average realized prices for oil in the U.S. and internationally?
A: The estimated average realized price for oil is $72.40 per barrel in the U.S. and $75.10 per barrel internationally.
Q: How much natural gas production was curtailed in the first quarter?
A: APA curtailed approximately 8 MMcf/d of U.S. natural gas production.
Q: What was the net gain on oil and gas purchases and sales?
A: The net gain on oil and gas purchases and sales was $120 million before tax.
Q: How many shares did APA repurchase in the first quarter?
A: APA repurchased 4.4 million shares at an average price of $22.87 per share.
Q: When is APA's first-quarter 2025 earnings call scheduled?
A: The earnings call is scheduled for 10 a.m. Central time on Thursday, May 8.
Read the original press release here.
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