APA Corporation (APA) has joined the wave of oil and energy companies cutting jobs to rationalize operations and maintain competitiveness. It recently reduced its workforce by 10-15%, affecting around 300 employees globally. These cuts align with the company’s broader strategy to lower costs and sustain long-term profitability in an evolving energy landscape.Why the Job Cuts?APA has long been looking for cost-cut measures targeting $350 million in annualized savings by 2027 to drive efficiency. Its revenues ...

Core Insights - APA Corporation, in partnership with Lagniappe Alaska, LLC and Oil Search (Alaska), LLC, announced preliminary results from the Sockeye-2 exploratory well, indicating significant potential in the North Slope region [1][4]. Group 1: Joint Venture and Exploration - The North Slope project is a joint venture where APA Corporation holds a 50% working interest, while Lagniappe Alaska, LLC and Santos each hold 25% [2]. - The joint venture began its exploration campaign in 2023 but faced challenges in meeting drilling objectives, leading to a renewed effort in 2024 with plans for three exploratory wells, including King Street-1, which resulted in a new field discovery [3]. Group 2: Sockeye-2 Well Results - The Sockeye-2 well, drilled to a depth of 10,500 feet, encountered a high-quality reservoir with approximately 25 feet of net oil pay in a Paleocene-aged sand formation, with an average porosity of 20% [5]. - The success of Sockeye-2 validates the partnership's geological models and confirms a working hydrocarbon system, de-risking additional prospects in the area [6]. Group 3: Future Steps and Commercial Viability - Following wireline logging, the next steps include flow testing to confirm permeability and reservoir performance, which are critical for assessing the well's commercial viability [7]. - The partnership remains optimistic about the potential of the Sockeye-2 play and plans to provide further updates as evaluations progress [7].

Core Insights - APA Corporation and its partners announced preliminary results from the Sockeye-2 exploratory well, with APA holding a 50% working interest and partners Lagniappe Alaska and Santos each holding 25% [1][4]. Exploration Results - The Sockeye-2 well was drilled to approximately 10,500 feet, encountering a high-quality reservoir with about 25 feet of net oil pay in a Paleocene-aged sand, featuring an average porosity of 20% [2]. - Compared to recent regional field analogues in the Brookian play, the porosity and permeability were better than expected, with permeability to be confirmed through a planned flow test [2]. - Additional potential pay zones were found in the shallower Staines Tongue formation [2]. Geological and Geophysical Insights - The Sockeye prospect spans 25,000 to 30,000 acres and supports the partners' geological and geophysical models, reducing risk for numerous additional prospects in the area [3]. - Wireline logging is complete, and further data collection, including core acquisition and flow testing, is underway [3]. Strategic Importance - The Sockeye-2 well is the second successful exploratory well drilled by the partnership on a 325,411-acre position on state lands, following the King Street-1 well, which was a new field discovery [4]. - The results from Sockeye-2 highlight the potential of the play and present significant opportunities in an active area of the North Slope with existing infrastructure [4]. Company Statements - The CEO of APA Corporation expressed encouragement regarding the Sockeye-2 results, indicating confirmation of a working hydrocarbon system and anticipation for flow test results [5].

HOUSTON, March 17, 2025 (GLOBE NEWSWIRE) -- APA Corporation ((NYSE, NASDAQ:APA) and its partners Lagniappe Alaska, LLC, an Armstong company, and Oil Search (Alaska), LLC, a subsidiary of Santos Limited, today announced preliminary results of the Sockeye-2 exploratory well. Apache holds a 50% working interest, operator Lagniappe and partner Santos each hold 25%. The Sockeye-2 well was drilled to a depth of approximately 10,500 feet and successfully encountered a high-quality reservoir with approximately 25 f ...

For the quarter ended December 2024, APA (APA) reported revenue of $2.5 billion, up 32.2% over the same period last year. EPS came in at $0.79, compared to $1.15 in the year-ago quarter.The reported revenue represents a surprise of +9.98% over the Zacks Consensus Estimate of $2.27 billion. With the consensus EPS estimate being $0.97, the EPS surprise was -18.56%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next m ...

Group 1 - APA Corporation is a diversified oil and gas producer operating both domestically and internationally [1] - The company was last covered in January 2024 following the Callon acquisition, indicating ongoing strategic developments [1] - The author has a professional background in the Nuclear Power industry, which aids in evaluating potential equities for long-term investment [1] Group 2 - The article serves as a platform for presenting the underlying fundamentals and long-term potential of each equity/business [1]

Core Insights - The oil and gas market has experienced a significant drop due to multiple factors impacting the energy industry simultaneously [1][8] - OPEC+ has announced an increase in production, which is expected to exert downward pressure on oil prices [3][8] - Concerns about a potential recession in the U.S. are growing, with weak consumer data and predictions of a GDP decline [5][8] - The uncertainty surrounding U.S. tariffs and their potential impact on trade and economic momentum is contributing to negative sentiment in the oil and gas sector [7][8] OPEC+ Production Increase - OPEC+ plans to increase production by approximately 138,000 barrels per day starting in April [3] - This decision is aimed at protecting market share and providing flexibility to support the oil market [3][4] U.S. Economic Concerns - There are fears of an impending recession in the U.S., with weak consumer data and a predicted nearly 3% drop in GDP for the first quarter of 2025 [5] - Auto sales are declining, and retailers have a cautious outlook for 2025, which is not favorable for oil and gas demand [5] Tariff Uncertainties - U.S. tariffs are fluctuating, with indications that higher prices for goods will occur this year [7] - Countries like China and Canada are prepared to engage in a trade war, which could negatively impact oil and gas demand [7] Market Dynamics - The oil and gas markets are influenced by supply and demand, with OPEC+'s production increase likely leading to lower prices [8] - Economic growth concerns in the U.S. and potential trade war implications could further affect global oil demand [8] Caution in the Energy Sector - The prevailing trends suggest that caution is advisable in the energy sector, as headwinds are strengthening [9] - Without lower interest rates or OPEC+ reducing supply, energy companies may face significant challenges due to lower oil prices [9]

Oil prices fell sharply on Monday, reaching their lowest levels in 2025, following the unexpected decision by OPEC+ to restart some of its previously halted production. WTI crude fell 2% to settle at $68.37 per barrel, while Brent crude slipped 1.6% to $71.62 per barrel, marking their lowest levels since December.The news sent shockwaves through energy stocks, with the sector experiencing widespread losses. The Energy Select Sector SPDR, which tracks the largest U.S. energy companies, sank 3.5% on Monday, m ...

Core Viewpoint - APA Corporation reported a decline in adjusted earnings for Q4 2024, primarily due to lower commodity prices and increased costs, despite a significant rise in revenues driven by acquisitions and production increases [1][2]. Financial Performance - Adjusted earnings per share for Q4 2024 were 79 cents, missing the Zacks Consensus Estimate of 97 cents and down from $1.15 in the previous year [1]. - Revenues reached $2.5 billion, a 32% increase from the same quarter last year, and exceeded the Zacks Consensus Estimate by 10% [2]. - The company generated $1 billion in cash from operating activities and reported a free cash flow of $420 million, up from $292 million a year ago [7]. Production & Selling Prices - Average production of oil and natural gas was 488,308 BOE/d, a 17.8% increase year-over-year, surpassing expectations [3]. - U.S. output increased by 37% year-over-year to 313,227 BOE/d, while international production decreased by 5.7% to 175,081 BOE/d [4]. - The average realized crude oil price was $72.42 per barrel, down 11% from $81.36 a year ago, but above the projected $68 [5]. Costs & Financial Position - Lease operating expenses totaled $474 million, a 31.7% increase from $360 million in the previous year [6]. - Total operating expenses surged 48.1% year-over-year to $2 billion, significantly higher than the model estimate of $2.9 billion [6]. - As of December 31, APA had approximately $625 million in cash and cash equivalents and $6 billion in long-term debt, resulting in a debt-to-capitalization ratio of 53.2% [8]. Guidance - APA expects adjusted production to average 399,000 BOE/d in Q1 2025 and 396,000 BOE/d for the full year, representing a 3% year-over-year increase [9]. - The company has set its upstream capital expenditure for the year at $2.5-$2.6 billion [9].

Acquisition and Asset Management - APA Corporation completed the acquisition of Callon Petroleum Company for approximately $4.5 billion, enhancing its asset base in the Permian Basin with 120,000 net acres in the Delaware Basin and 25,000 net acres in the Midland Basin[29]. - The company generated approximately $1.6 billion from the sale of non-core producing properties and mineral interests, primarily used to reduce debt, streamlining its acreage position for long-term growth[29]. - The company has a noncontrolling ownership interest in Kinetik Holdings Inc., divesting its stake for total proceeds of approximately $880 million over three years[29]. - APA's capital allocation process has been enhanced through a series of transactions that upgraded its asset portfolio and improved capital efficiencies[27]. - The company relinquished its net acreage holdings offshore the Dominican Republic in 2024, continuing to assess opportunities in other international locations[69]. Production and Reserves - In 2024, the Company achieved total production of 166.4 MMboe, generating revenues of $8,196 million, with the United States contributing 62% of production and 53% of revenues[33]. - The Company's U.S. operations have estimated year-end proved reserves of 695 MMboe, with 72% of these reserves located in the U.S.[35]. - The company's total estimated proved reserves of 500 MMbbls of crude oil, 209 MMbbls of NGLs, and 1.6 Tcf of natural gas, equivalent to 969 million boe, with liquids representing approximately 73 percent[76]. - The company's proved developed reserves totaled 669 MMboe, while estimated proved undeveloped (PUD) reserves amounted to 300 MMboe, representing approximately 31 percent of worldwide total proved reserves[76]. - The company added approximately 325 MMboe from extensions, discoveries, and other additions during 2024, with 223 MMboe derived from U.S. drilling activity in the Permian Basin[77]. Operational Strategy and Flexibility - APA's business strategy focuses on moderate, sustainable production growth while managing costs and strengthening its balance sheet to generate excess cash flow for shareholder returns[25]. - The company aims to invest for long-term returns while navigating uncertainties in global supply chains and financial markets, including inflation and geopolitical tensions[25]. - APA's operational flexibility and rigorous asset management are key to optimizing shareholder value over the long term[27]. - The company has ongoing operations in the U.S., Egypt, and offshore the U.K., with active development in Suriname and exploration interests in Uruguay and Alaska[22][31]. - APA's diversified portfolio allows for timely responses to near-term price volatility and effective management of investment programs[26]. Exploration and Development - The Company drilled 87 gross development wells in the Southern Midland Basin with a 100% success rate and acquired approximately 25,000 net acres in the Midland Basin as part of the Callon acquisition[37]. - In Egypt, the Company held 5.3 million gross acres at year-end 2024, with 67% of this acreage undeveloped, contributing 30% of total production and 17% of year-end estimated proved reserves[45][48]. - The Company completed a three-well exploration program in Alaska, confirming a working petroleum system on its 325,000 gross acres of undeveloped acreage[44]. - The Company drilled 48 gross development and 36 gross exploration wells in Egypt in 2024, utilizing 3-D seismic surveys covering three million acres to enhance drilling inventory[49]. - The Company holds a 45 percent working interest in Block 53 offshore Suriname, with approximately 13,000 net undeveloped acres in the Baja discovery area[57]. Financial Commitments and Investments - The Company announced a $10.5 billion investment for the GranMorgu oil development in Block 58 offshore Suriname, with first oil expected in 2028[56]. - The Company has long-term delivery commitments for natural gas averaging 161 Bcf per year from 2025 to 2029 and 4.2 MMbbls of crude oil in 2025[42][43]. - The new gas sales agreement in Egypt, effective January 2025, could improve pricing based on production thresholds, creating potential for significant new drilling inventory[52]. - The company spent approximately $341 million on projects associated with proved undeveloped reserves in 2024, with $321 million allocated to U.S. activities and $20 million to international areas[82]. Employee and Community Engagement - The company employed approximately 2,305 full-time equivalent employees globally as of December 31, 2024, with the majority located in the United States (1,505 employees)[95][96]. - The company has established various employee resource groups (ERGs) and expanded recruitment efforts at Historically Black Colleges & Universities (HBCUs) to enhance diversity and inclusion[100]. - The Company granted 169,000 trees to 63 community partners in the U.S. and U.K. as part of its environmental stewardship initiatives[116]. - The Company continues to support the Clean Cooking Alliance in Sub-Saharan Africa, facilitating access to technical support and funding for clean cooking entrepreneurs[117]. Safety and Compliance - Total Recordable Incident Rate (TRIR) at 0.16, which is 33% below the target of 0.24[110]. - Days Away, Restricted and Transferred Rate (DART) at 0.09, 25% below the target of 0.12[111]. - Severe Incident Rate (SIR) at 0.009, 10% below the target of 0.010[111]. - Vehicle Incident Rate (VIR) at 0.59, 28% above the target of 0.46[110]. - The company engaged Ryder Scott Company for a reserves audit, covering 90 percent of estimated proved reserves values and 82 percent of volumes, ensuring compliance with SEC regulations[88][89].