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].

Core Insights - APA Corporation published its 2024 Sustainability Report, highlighting significant achievements in Environmental, Social, and Governance (ESG) goals for 2023 and advancements in sustainability initiatives and emissions reduction efforts [1] Group 1: Environmental Initiatives - APA successfully achieved its methane reduction goal by converting over 2,800 pneumatic devices to instrument air or valve retrofit, surpassing the target of 2,000 devices [2] - The company set greenhouse gas (GHG) emissions intensity targets linked to long-term employee compensation and joined the United Nations Oil and Gas Methane Partnership 2.0 [2] - APA recycled 61% of water used for U.S. onshore completions, exceeding the goal of 50% and nearly doubling the percentage of recycled water from 2022 to 2023 [2] Group 2: Social Responsibility - The company recorded the lowest Total Recordable Incident Rate (TRIR) and Severe Incident Rate (SIR) in its history, emphasizing its commitment to employee health and safety [3] - APA launched the "Well Deserved" employee recognition program to acknowledge team members for exceptional efforts [3] - The company expanded its Tree Grant Program internationally, donating thousands of trees to nonprofits, and initiated a medical care plan for over 28,000 patients in Egypt [3] Group 3: Company Overview - APA Corporation explores and produces oil and natural gas in the U.S., Egypt, and the U.K., and also explores offshore Suriname and other locations [4]

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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 ...

HOUSTON, July 11, 2024 (GLOBE NEWSWIRE) -- APA Corporation (Nasdaq: APA) today provided supplemental information regarding certain second-quarter 2024 financial and operational results. This information is intended only to provide additional information regarding current estimates management believes will affect results for the second-quarter 2024. It is provided to assist investors, analysts and others in formulating their own estimates, and is not intended to be a comprehensive presentation of all factors ...

HOUSTON, July 11, 2024 (GLOBE NEWSWIRE) -- APA Corporation (Nasdaq: APA) today provided supplemental information regarding certain second-quarter 2024 financial and operational results. This information is intended only to provide additional information regarding current estimates management believes will affect results for the second-quarter 2024. It is provided to assist investors, analysts and others in formulating their own estimates, and is not intended to be a comprehensive presentation of all factors ...