Group 1 - APA Corporation announced its fourth-quarter and full-year 2024 results, which are available on the company's website [1] - A conference call is scheduled for February 27 at 10 a.m. Central time to discuss the results, with a replay available for one year [1] Group 2 - APA Corporation operates in oil and natural gas exploration and production in the United States, Egypt, the United Kingdom, and offshore Suriname [2] - The company provides announcements, operational updates, investor information, and press releases on its website [2]

Industry Overview - The energy sector is experiencing a challenging earnings season, with approximately 69.2% of S&P 500 energy companies having reported their fourth-quarter results, which have not been favorable due to declining oil and gas prices [1] - The average price of West Texas Intermediate crude oil fell to $70.69 per barrel in Q4 2024, down from $78.41 the previous year, attributed to increased global oil production and a slowdown in demand growth [2] - Natural gas prices also declined, with the Henry Hub spot price averaging $2.44 per million British thermal units (MMBtu), down from $2.74 per MMBtu in the same quarter last year [2] Earnings Performance - Energy companies in the S&P 500 are projected to report a 22.5% drop in earnings year-over-year for 2023, contrasting with an expected overall earnings growth of 13.4% for the S&P 500 index [3][4] - Revenue growth for energy companies has been modest at 2.1% year-over-year, while the overall S&P 500 index has seen a revenue increase of 5.5% [5] - Sectors such as technology and finance have reported significant earnings growth of 24.2% and 19.4%, respectively, highlighting the struggles of the energy sector [6] Market Sentiment - The decline in oil and gas prices is squeezing profit margins, leading investors to seek better returns in high-growth sectors like technology and finance, making it difficult for energy companies to attract investment [7] - There is uncertainty regarding a quick recovery in oil and gas prices, prompting investors to adjust their expectations for energy stocks in 2025 [7] Company-Specific Insights - APA Corporation (APA) is expected to report a 4.8% increase in revenues, reaching $2.3 billion, driven by a 31.3% rise in purchased oil and gas sales, despite a projected earnings decrease of 15.65% year-over-year [11] - Ovintiv Inc. (OVV) is anticipated to see a 52.77% decrease in earnings year-over-year, with an Earnings ESP of -1.03% and a Zacks Rank of 2, indicating low chances of an earnings beat [12][14] - Vista Oil & Gas (VIST) is projected to report a 64.29% decrease in earnings, with an Earnings ESP of 0.00% and a Zacks Rank of 3, suggesting low chances of an earnings beat [15] - Expand Energy Corporation (EXE) is expected to see a 59.54% decrease in earnings, with an Earnings ESP of -10.14% and a Zacks Rank of 2, indicating low chances of an earnings beat [17]

Core Insights - Analysts expect APA to report quarterly earnings of $0.97 per share, reflecting a year-over-year decline of 15.7% [1] - Revenue projections stand at $2.27 billion, indicating a 20.2% increase from the previous year [1] - The consensus EPS estimate has been revised upward by 2.2% in the last 30 days, showing analysts' reassessment of their initial estimates [1][2] Revenue Estimates - 'Oil, natural gas, and natural gas liquids production revenues - Gas revenues' are projected to be $160.09 million, down 27.9% year over year [4] - Total 'Oil, natural gas, and natural gas liquids production revenues' are expected to reach $2.02 billion, up 7.2% year over year [4] - 'Oil, natural gas, and natural gas liquids production revenues - Natural gas liquids revenues' are estimated at $177.17 million, reflecting a 33.2% increase year over year [5] - 'Purchased oil and gas sales' are projected to be $374.76 million, indicating a 32.9% increase from the year-ago quarter [5] Production Volume Estimates - Total production volume per day is expected to reach 480.69 KBOE/D, up from 414.43 KBOE/D in the previous year [6] - Natural gas production volume per day is estimated at 831.28 million cubic feet, slightly up from 830.37 million cubic feet year over year [6] - Oil production volume per day is forecasted to be 260.38 thousand barrels, compared to 207.02 thousand barrels in the same quarter last year [7] - NGL production volume per day is projected at 81.84 thousand barrels, up from 69.01 thousand barrels year over year [7] Price Estimates - The average price per barrel of oil is expected to be $71.39, down from $81.36 in the same quarter last year [8] - The average price per barrel of NGL is projected at $24.05, compared to $20.70 in the same quarter last year [8] U.S. Production Estimates - Total production volume per day in the United States is expected to be 311.63 KBOE/D, up from 228.67 KBOE/D year over year [9] - Oil production volume per day in the United States is forecasted to reach 146.82 thousand barrels, compared to 83.91 thousand barrels in the previous year [9] Stock Performance - Over the past month, APA shares have recorded a return of -2.3%, while the Zacks S&P 500 composite has changed by -0.5% [10] - APA holds a Zacks Rank 3 (Hold), suggesting its performance will likely align with the overall market in the upcoming period [10]

Core Viewpoint - APA Corporation is expected to report fourth-quarter 2024 results on February 26, with a consensus estimate of $0.97 earnings per share and $2.3 billion in revenues, indicating a year-over-year earnings decline of 15.7% but a revenue increase of 20.2% [1][4]. Group 1: Previous Performance - In the last reported quarter, APA missed the consensus earnings estimate of $1.03, reporting adjusted earnings of $1, while revenues of $2.5 billion exceeded expectations by nearly 12% due to contributions from the Callon Petroleum acquisition and higher production levels [3]. - APA has beaten the Zacks Consensus Estimate in one of the last four quarters and missed in the others, with the current consensus estimate for the upcoming quarter remaining unchanged over the past week [4]. Group 2: Production and Strategic Moves - APA is anticipated to benefit from increased domestic production, with an expected average fourth-quarter volume of 311,984 barrels of oil equivalent per day (BOE/d), reflecting a 36.4% increase from the previous year's level of 228,671 BOE/d [5]. - Since 2020, APA's strategic acquisitions have added over $5 billion in assets and divested $2.5 billion in non-core properties, effectively doubling its unconventional production in the Permian Basin, enhancing operational efficiency and reducing per-unit lease operating expenses [6]. Group 3: Earnings Prediction - A positive earnings surprise is likely for APA, supported by a positive Earnings ESP and a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold), which increases the likelihood of an earnings beat [7].

Company Performance - APA closed at $23.31, marking a +1.39% move from the prior day, outperforming the S&P 500 which gained 0.03% [1] - Over the previous month, APA shares experienced a loss of 5.7%, underperforming the Oils-Energy sector's gain of 0.76% and the S&P 500's gain of 4.19% [1] Upcoming Earnings - APA's earnings report is scheduled for February 26, 2025, with projected earnings of $0.97 per share, indicating a year-over-year decline of 15.65% [2] - The consensus estimate for quarterly revenue is $2.27 billion, reflecting a 20.24% increase from the previous year [2] Analyst Estimates - Recent adjustments to analyst estimates for APA are important as they reflect near-term business trends, with positive revisions indicating a favorable outlook on the company's health and profitability [3] - The Zacks Rank system, which incorporates these estimate changes, provides actionable ratings for investors [4] Zacks Rank and Valuation - APA currently holds a Zacks Rank of 3 (Hold), with a 6.43% rise in the Zacks Consensus EPS estimate over the past month [5] - The company is trading at a Forward P/E ratio of 6.34, which is a discount compared to the industry's average Forward P/E of 9.37 [6] Industry Context - The Oil and Gas - Exploration and Production - United States industry, part of the Oils-Energy sector, has a Zacks Industry Rank of 52, placing it in the top 21% of over 250 industries [6] - The strength of individual industry groups is measured by the Zacks Industry Rank, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Company Performance - APA's stock closed at $22.19, down 0.89% from the previous trading session, underperforming the S&P 500's gain of 0.39% [1] - The stock has decreased by 5.37% over the past month, contrasting with the Oils-Energy sector's gain of 1.79% and the S&P 500's gain of 1.7% [1] Earnings Forecast - APA is expected to report earnings on February 26, 2025, with a forecasted EPS of $0.97, reflecting a 15.65% decline from the same quarter last year [2] - The Zacks Consensus Estimate projects net sales of $2.27 billion, which is a 20.24% increase compared to the year-ago period [2] Analyst Estimates - Recent changes to analyst estimates for APA indicate a shifting business landscape, with positive revisions suggesting optimism about the company's profitability [3] - The Zacks Rank system, which evaluates these estimate changes, has a history of correlating with stock price performance [4] Zacks Rank and Valuation - APA currently holds a Zacks Rank of 3 (Hold), with the consensus EPS estimate having increased by 10.31% over the past month [5] - The company is trading at a Forward P/E ratio of 6.17, which is lower than the industry average Forward P/E of 9.08 [6] Industry Context - The Oil and Gas - Exploration and Production - United States industry, part of the Oils-Energy sector, has a Zacks Industry Rank of 45, placing it in the top 18% of over 250 industries [6][7]

Core Points - Cerro Grande Mining Corporation (CEG) has formally terminated the Asset Purchase and Contracts Assignment Agreement (APA) with Minera Tamidak Limitada due to the inability to make the final cash payment required by Tamidak [1][3] - The total purchase price under the APA was 3,900,000,000 Chilean Pesos (approximately CDN$6.08 million), of which CEG had already paid 2,600,000,000 Chilean Pesos through the issuance of common shares [2] - The final installment of 1,300,000,000 Chilean Pesos was due by June 1, 2024, and Tamidak opted for cash payment, which CEG could not fulfill [3] - As a result of the termination, CEG has returned all acquired assets, including mining concessions related to the Pimentón Copper Gold Mining Project, and the Lease Agreement for Mining Exploitation Concessions has also been terminated [4] - The Board of Directors is currently reviewing options and will provide updates as necessary [5]

Core Insights - APA Corporation provided supplemental information regarding its fourth-quarter 2024 financial and operational results, indicating that actual results may vary based on factors not identified in the release [1] Financial Performance - Estimated average realized prices for fourth-quarter 2024 are as follows: - Oil in the United States: $70.25 per barrel - NGL in the United States: $24.50 per barrel - Natural Gas in the United States: $1.00 per Mcf - Oil internationally: $74.75 per barrel - NGL internationally: $50.50 per barrel - Natural Gas internationally: $4.00 per Mcf [2] - The company reported a realized gain on commodity derivatives (before tax) of $1 million, dry hole costs (before tax) of $30 million, and a net gain on oil and gas purchases and sales (before tax) of $140 million [2] - General and administrative expenses for the quarter were estimated at $100 million [2] Production Update - APA curtailed approximately 23.5 MBoe/d in the fourth quarter due to weak or negative Waha hub prices, exceeding the previously issued guidance of 22 MBoe/d [3] Asset Sale Update - In September, APA announced the divestiture of non-core assets in the Permian Basin, which closed on December 31, 2024. The net proceeds from this sale were approximately $774 million after a deposit of $95 million and a purchase price adjustment [4] Shareholder Information - The estimated weighted-average basic common shares for the fourth quarter were 369 million, a slight decrease from 370 million in the third quarter of 2024. The company repurchased 4.6 million shares at an average price of $21.90 per share during the fourth quarter [5] Upcoming Events - APA will host a conference call to discuss its fourth-quarter 2024 results on February 27, 2025, at 10 a.m. Central time, which will be available for replay on the company's website [6]

APA (APA) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.The upward trend in estimate revisions for this oil and natural gas producer reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends i ...

Shares of APA (APA) have gained 8.4% over the past four weeks to close the last trading session at $23.70, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $30.08 indicates a potential upside of 26.9%.The mean estimate comprises 25 short-term price targets with a standard deviation of $7.16. While the lowest estimate of $22 indicates a 7.2% decline from the current price level, t ...