Core Viewpoint - APA's recent earnings report shows strong performance with adjusted earnings and revenue exceeding expectations, driven by increased production from the Callon Petroleum acquisition, despite a slight decline in share price over the past month [2][4]. Financial Performance - APA reported Q2 2024 adjusted earnings of $1.17 per share, surpassing the Zacks Consensus Estimate of 95 cents and improving from 85 cents in the previous year [2]. - Revenues reached $2.8 billion, a 42.4% increase from the same quarter last year, and exceeded the Zacks Consensus Estimate by 20.7% [2]. - The company returned value to shareholders through $92 million in dividends and repurchased 1.5 million shares at an average price of $28.72 [2]. Production & Costs - Average production was 473,409 BOE/d, up 18.7% year-over-year, with U.S. output increasing by 42.5% to 303,416 BOE/d [3]. - Lease operating expenses totaled $460 million, a 27.4% increase from the previous year, while total operating expenses rose 47.8% to $1.9 billion [4]. - APA generated $877 million in cash from operating activities and reported a free cash flow of $103 million, compared to $94 million a year ago [4]. Guidance - For Q3, APA expects adjusted production to average 388,000 BOE/d, with oil volumes projected at 208,000 Bbl/d [5]. - The company has set its upstream capital expenditure for the year at $2.7 billion or more [5]. Market Position & Outlook - The consensus estimate for APA has seen a downward shift of -6.49% recently, indicating mixed investor sentiment [7]. - APA holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [9]. - The stock has an aggregate VGM Score of B, with a strong value score but weaker momentum [8]. Industry Comparison - APA operates within the Zacks Oil and Gas - Exploration and Production - United States industry, where CNX Resources Corporation has seen a 6.5% gain over the past month [10]. - CNX Resources reported revenues of $346 million, reflecting a year-over-year increase of 2.7%, and has a Zacks Rank 3 (Hold) as well [10].

Core Viewpoint - APA Corporation is considering the sale of significant drilling properties in the Permian Basin, valued at approximately $1 billion, as part of a strategy to streamline operations and reduce its substantial debt of $6-$7 billion [1] Group 1: Importance of the Permian Basin - The Permian Basin is a prolific oil-producing region, with APA's assets in this area producing over 22,000 barrels of oil equivalent per day, of which oil constitutes about 60% [2] - The decision to sell these assets reflects APA's strategic pivot towards focusing on shale operations, which are viewed as core growth drivers [2] Group 2: Financial Implications of the Asset Sale - APA aims to reduce its debt by $2 billion over the next three years, with proceeds from the sale of the Permian Basin assets expected to significantly contribute to this goal [3] - The company has already made progress in debt reduction through a previous asset sale totaling nearly $700 million [3] Group 3: Impact on Financial Health - The divestment is anticipated to strengthen APA's balance sheet, providing increased financial flexibility and potentially improving its credit rating [4] - Focusing on high-margin shale operations is expected to enhance profitability and shareholder value in the long term [4] Group 4: Broader Industry Context - The U.S. oil and gas industry is currently experiencing a trend of mergers and acquisitions, with companies seeking to consolidate and expand their portfolios [5] - APA's activities, including the acquisition of Callon Petroleum and the sale of non-core assets, align with this industry trend [5] Group 5: Market Position and Strategic Moves - APA has positioned itself as a key player in the evolving oil and gas landscape, demonstrating flexibility in managing its portfolio by acquiring high-value assets while divesting non-core properties [6] - The potential $1 billion deal for the Permian Basin assets is a strategic step towards optimizing operations and strengthening financial position [6] Group 6: Considerations for Investors - Investors should monitor APA's shift towards shale operations, which are expected to be the primary growth engine moving forward [7] - The market's reaction to the asset sales will be a key indicator of investor sentiment, with successful redeployment of proceeds into core operations potentially leading to a positive stock trajectory [8] - Long-term growth prospects depend on APA's ability to execute its strategic plan effectively, focusing on high-margin shale operations and disciplined portfolio management [8] Conclusion - APA's exploration of the sale of its Permian Basin assets is a strategic move aimed at optimizing its portfolio and reducing debt, with significant financial and operational implications [9]

Core Viewpoint - APA Corporation reported strong second-quarter 2024 results, with adjusted earnings of $1.17 per share, exceeding expectations and showing year-over-year improvement, primarily driven by increased production from the Callon Petroleum acquisition [1] Financial Performance - Revenues reached $2.8 billion, a 42.4% increase from the previous year, and surpassed the Zacks Consensus Estimate by 20.7% [1] - The company generated $877 million in cash from operating activities and reported an adjusted operating cash flow of $1.1 billion [4] - Free cash flow was $103 million, compared to $94 million in the same quarter last year [4] Production and Pricing - Average production of oil and natural gas was 473,409 BOE/d, up 18.7% year-over-year, exceeding expectations [3] - U.S. output increased by 42.5% year-over-year to 303,416 BOE/d, while international production decreased by 8.7% [3] - Average realized crude oil price was $82.28 per barrel, a 7.7% increase from the previous year, while the average realized natural gas price fell to $1.77 per thousand cubic feet [3] Costs and Expenses - Lease operating expenses totaled $460 million, a 27.4% increase from the previous year, contributing to total operating expenses rising 47.8% to $1.9 billion [4] - The company incurred $839 million in upstream capital expenditures during the quarter [4] Shareholder Returns - APA Corporation continued to reward shareholders with dividends and buybacks, repurchasing 1.5 million shares at $28.72 each and paying out $92 million in dividends [1] Guidance - The company expects adjusted production to average 388,000 BOE/d in Q3 and 387,000 BOE/d for the full year, with upstream capital expenditure pegged at $2.7 billion or more [6]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission File Number: 1-40144 APA CORPORATION (Exact name of registrant as specified in its charter) Delaware 86-1430562 (State or oth ...

Financial Data and Key Metrics Changes - APA Corporation reported consolidated net income of $541 million, or $1.46 per diluted common share for Q2 2024, with adjusted net income of $434 million, or $1.17 per share after excluding certain items [14][15] - Free cash flow generated during the first half of the year was approximately $200 million, with $311 million returned to shareholders, nearly half through share repurchases [15] - The company anticipates a substantial increase in free cash flow for the second half of the year compared to the first half [13] Business Line Data and Key Metrics Changes - In the U.S., oil production volumes reached 139,500 barrels per day, up 67% from Q1 2024, largely due to the integration of Callon [6][10] - Oil now comprises 46% of total U.S. production following the Callon transaction, with cash flow sensitivity to a $5 per barrel change in oil price estimated at approximately $300 million annually [7][10] - Production in Egypt exceeded expectations, benefiting from new wells and improved recompletion results [7][11] Market Data and Key Metrics Changes - The North Sea operations experienced better-than-forecast facility runtime, contributing to higher production [8] - In Suriname, the company remains on track for a final investment decision (FID) before year-end 2024, with first oil expected in 2028 [8][55] - The company raised its full-year estimate of income from third-party oil and gas purchased and sold by $120 million to around $350 million, driven by favorable pricing differentials [20] Company Strategy and Development Direction - The integration of Callon is expected to yield annual cost synergies of $250 million, with operational synergies projected at $120 million annually [16][17] - The company is focused on improving capital efficiency and well performance on Callon acreage, with a preliminary estimate indicating a $1 million reduction in drilling costs per standardized two-mile lateral [9][36] - APA Corporation is committed to maintaining a strong balance sheet while balancing shareholder returns and capital expenditures [15][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in operational progress in Egypt and the U.S., with expectations for continued strong base production performance [11][12] - The company anticipates a strong oil growth trajectory in the second half of 2024, with increased production guidance for Q4 [10][12] - Management highlighted the importance of safety and environmental goals, as well as ongoing discussions regarding potential gas projects in Egypt [13][72] Other Important Information - The company is now subject to the U.S. alternative minimum tax, introducing new guidance for current U.S. tax accruals of $95 million for the year [20] - The Callon acquisition closed on April 1, 2024, and the full-year 2024 guidance reflects combined results from APA and Callon [4] Q&A Session Summary Question: CapEx run rate and future guidance - The CapEx run rate for Q4 is expected to be around $600 million, with a potential decline year-over-year [21][22] Question: Inventory depth post-Callon acquisition - Management is working on understanding inventory depth and believes productivity improvements could increase inventory visibility [24][25] Question: Rig count impact on production in Egypt - The reduction in rig count is expected to free up workover rig time, allowing for significant recompletion projects [28][29] Question: Shareholder return strategy - The company aims for at least 60% of free cash flow to be returned to shareholders through dividends and buybacks [38][39] Question: Future opportunities in Suriname - The company remains on track for FID in Suriname by year-end 2024, with ongoing collaboration with partners [55][56] Question: Alaska exploration activities - The company is excited about exploration opportunities in Alaska, particularly following the King Street Discovery [64][65]

Exhibit 99.1 NEWS RELEASE APA Corporation Announces Second-Quarter 2024 Financial and Operational Results Key Takeaways • Reported production of 473,000 barrels of oil equivalent (BOE) per day; adjusted production, which excludes Egypt noncontrolling interest and tax barrels, was 405,000 BOE per day; • Exceeded second-quarter U.S. oil production guidance and raising full-year guidance; • Expect U.S. oil production to increase 8% from second-quarter 2024 to fourth-quarter 2024; • Egypt adjusted production ex ...

Core Viewpoint - APA Corporation is expected to report second-quarter results on July 31, with a consensus estimate of 95 cents per share and revenues of $2.3 billion, reflecting a year-over-year increase in both earnings and revenues [1][4]. Group 1: Previous Quarter Performance - In the last reported quarter, APA missed the consensus earnings estimate of 90 cents, reporting adjusted earnings of 78 cents, while revenues of $1.9 billion exceeded expectations by $29 million due to higher commodity prices [2]. - The company has a trailing four-quarter earnings surprise average of 5.5%, having surpassed estimates twice and missed twice [2]. Group 2: Estimate Revisions - The Zacks Consensus Estimate for the second-quarter earnings has been revised downward by 12% in the past week, indicating a 24.7% rise year-over-year, while revenue estimates suggest an 18% increase from the previous year [4]. Group 3: Production and Costs - APA is anticipated to benefit from increased domestic production, with expected average second-quarter volumes at 292,395 barrels of oil equivalent per day (BOE/d), a 37.4% increase from the previous year [5]. - However, lease operating expenses and property/equipment costs are projected to rise significantly due to inflation, with estimates of $459.7 million and $596.2 million, reflecting increases of 27.4% and 68.4% respectively from the prior year [6]. Group 4: Earnings Prediction Model - The Zacks model does not predict an earnings beat for APA, as the Earnings ESP is -3.37% and the company holds a Zacks Rank of 3 (Hold) [7]. Group 5: Alternative Investment Opportunities - Other energy firms with better earnings prospects include Enterprise Products Partners L.P. with an Earnings ESP of +4.25% and a Zacks Rank of 3, and Northern Oil and Gas with an Earnings ESP of +1.82% and a Zacks Rank of 3 [8][9].

HOUSTON, July 23, 2024 (GLOBE NEWSWIRE) -- APA Corporation (NASDAQ:APA) today published its 2024 Sustainability Report. Highlights from the report include the achievement of key Environmental, Social and Governance (ESG) goals in 2023 and progression of the company's sustainability initiatives and emissions reduction efforts. The full report is available on APA's website. "Throughout the past year, APA has demonstrated consistent progress and excellent performance across our sustainability focus areas while ...

Herdik Herlambang/iStock via Getty Images Did you see the oil services stocks take off recently? The VanEck Oil Services ETF (OIH) surged by nearly 4% as the "drill baby drill" "Trump Trade" came back into focus on Monday. With fewer than four months until the presidential election, former President Trump leads by roughly 3% in many polls. However, that's just the polling. If we look at the odds, Donald Trump is approaching a 70% of winning in November. Therefore, as investors, we should seriously consider ...

In the latest market close, APA (APA) reached $31.67, with a +0.67% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.64%. At the same time, the Dow added 1.85%, and the tech-heavy Nasdaq gained 0.2%.Prior to today's trading, shares of the oil and natural gas producer had gained 12.6% over the past month. This has outpaced the Oils-Energy sector's loss of 8% and the S&P 500's gain of 3.82% in that time.Analysts and investors alike will be keeping a ...