Highlights

• Reported production of 399,000 barrels of oil equivalent (BOE) per day; adjusted production, which excludes Egypt noncontrolling interest and tax barrels, was 325,000 BOE per day; 
• Generated net cash from operating activities of $1 billion;
• Returned 131% ($123 Million) of Free Cash Flow to shareholders in the second quarter;
• Appraisal at Krabdagu-3 on Block 58 offshore Suriname confirms extension of oil resource 14 kilometers from the discovery well;
• Long-term natural gas supply contract with Cheniere commenced Aug. 1; and
• On track to deliver total adjusted oil production growth of more than 10% for the year, driven by U.S. and Egypt performance.

APA Corporation has announced its financial and operational results for the second quarter of 2023. 

APA reported net income attributable to common stock of $381 million, or $1.23 per diluted share. When adjusted for items that impact the comparability of results, APA’s second-quarter earnings were $264 million, or $0.85 per diluted share. Net cash provided by operating activities was $1.0 billion, and adjusted EBITDAX was $1.2 billion. The company generated $94 million in free cash flow during the quarter.

“APA delivered a strong second quarter, driven by steady operational execution and ongoing cost management,” said John J. Christmann IV, APA’s CEO and president. “Global adjusted production was at the high end of expectations, led by above-guidance oil production growth in the Permian Basin. In Suriname, appraisal of the Krabdagu fairway is ongoing. While there is more technical work to do, the results to date have provided more confidence as we advance toward developing the country’s first offshore oil hub.” 

Second-Quarter Summary

Second-quarter reported production was 399,000 BOE per day, and adjusted production, which excludes Egypt noncontrolling interest and tax barrels, was 325,000 BOE per day. Adjusted production grew by 2% compared to the first quarter, driven primarily by a 6% increase in U.S. oil volumes. Gross oil production in Egypt was in line with guidance. 

APA’s second-quarter upstream capital investment of $516 million was below guidance, as were lease operating expenditures and G&A. These results were primarily a result of the company’s continued focus on cost management. 

Capital and Activity Update

For the remainder of the year, drilling activity in the U.S. and Egypt is expected to remain at current levels, as this activity pace optimizes operational efficiencies. In Suriname, the focus is on completing the Krabdagu appraisal program and scoping an oil hub project to develop the combined Sapakara and Krabdagu resource. No additional drilling will be necessary in Suriname during 2023. Accordingly, when combined with deferred platform drilling activity in the North Sea and ongoing cost management efforts, APA is reducing full-year upstream capital investment guidance to $1.9 billion. Additionally, the company is lowering its full-year LOE outlook by $100 million to $1.4 billion.   

Christmann concluded, “We are tracking in line with the full-year production guidance issued in February and are particularly pleased with the oil production growth we are currently generating on a reduced capital budget.”

KeyFacts Energy: APA US onshore country profile