APA(APA)2025-02-28 21:11Acquisition and Asset Management - APA Corporation completed the acquisition of Callon Petroleum Company for 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 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 341 million on projects associated with proved undeveloped reserves in 2024, with 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].