APA Corp (APA) Q1 2025 Earnings Call Highlights: Strong Financial Performance and Strategic ...

GuruFocus News

Fri, May 9, 2025, 12:34 AM 4 min read

• Net Income: $347 cardinal oregon $0.96 per diluted share.

• Adjusted Net Income: $385 cardinal oregon $1.06 per share.

• Free Cash Flow: $126 cardinal successful the archetypal quarter.

• Gas Production successful Egypt: Average realized state terms of $3.19, exceeding guidance of $3.15.

• Capital Investment: First 4th upstream superior beneath guidance.

• Cost Savings: $800,000 successful outgo savings per good successful the Permian.

• Asset Sale: New Mexico Permian properties sold for $608 million.

• Debt Reduction: Proceeds from plus merchantability to beryllium allocated towards indebtedness reduction.

• Gas Marketing Income: Updated guidance to $575 cardinal for 2025.

• Warning! GuruFocus has detected 2 Warning Sign with APA.

Release Date: May 08, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• APA Corp (NASDAQ:APA) delivered beardown archetypal 4th results with accumulation successful enactment and little superior concern comparative to guidance.

• Significant improvements successful drilling show led to superior coming successful beneath guidance, peculiarly successful the Permian.

• In Egypt, state accumulation exceeded guidance owed to outperformance from caller improvement programs and optimized infrastructure.

• The institution announced a 2nd discovery, Sockeye-2, successful the Brookian play, indicating promising exploration potential.

• APA Corp (NASDAQ:APA) is making important advancement connected outgo simplification initiatives, expanding 2025 savings targets to $130 cardinal and annualized tally complaint savings to $225 million.

• The institution is experiencing upward unit connected definite operating costs successful the Permian, specified arsenic h2o handling and compression.

• Despite progress, achieving meaningful LOE savings is proving challenging owed to inflationary pressures successful areas similar compression and h2o disposal.

• The plus merchantability of New Mexico Permian properties, portion strategic, represents a afloat exit from New Mexico, perchance limiting aboriginal opportunities successful that region.

• There is simply a request for extended execution clip frames to execute important semipermanent outgo reductions successful definite areas.

• The institution faces volatility successful Waha pricing, impacting the economical viability of drilling successful Alpine High.

Q: Given the important outgo savings achieved this year, is determination imaginable for the $350 cardinal tally complaint savings people by year-end 2027 to beryllium increased? A: John Christmann, CEO, stated that portion they are up of docket with $225 cardinal successful tally complaint savings, they program to support the $350 cardinal people intact for now. However, helium anticipates that this fig whitethorn beryllium raised successful the aboriginal arsenic they proceed to marque progress.