APA(APA)2025-02-27 14:48Financial Performance - In Q4 2024, APA Corporation reported a net income of $354 million, or $0.96 per diluted share, with adjusted earnings of $290 million, or $0.79 per diluted share[5]. - For the full year 2024, net income attributable to common stock was $804 million, or $2.27 per diluted share, with adjusted earnings totaling $1.3 billion, or $3.77 per diluted share[7]. - The company generated $3.6 billion in net cash from operating activities and achieved $5.9 billion in adjusted EBITDAX for 2024[7]. - Free cash flow for the year ended December 31, 2024, was $841 million, down 13% from $965 million in 2023[42]. - Net cash provided by operating activities for the year ended December 31, 2024, was $3,620 million, an increase of 16% from $3,129 million in 2023[42]. - Adjusted EBITDAX for Q4 2024 was $1,550 million, compared to $1,557 million in Q4 2023, showing a slight decline of 0.4%[45]. - Net income attributable to common stock for Q4 2024 was $354 million, a decrease of 4.1% from $377 million in Q4 2023, resulting in diluted EPS of $0.96 compared to $1.00[51]. - For the year ended December 31, 2024, net income attributable to common stock was $804 million, down 64.3% from $2.255 billion in 2023, with diluted EPS decreasing to $2.27 from $9.25[51]. - Adjusted earnings (Non-GAAP) for Q4 2024 were $290 million, a decline of 17.6% from $352 million in Q4 2023, leading to an adjusted EPS of $0.79 compared to $1.15[51]. Production and Reserves - Full-year production averaged 455,000 BOE per day, with adjusted production at 385,000 BOE per day[7]. - Total adjusted production for 2025 is expected to be around 396,000 BOE per day, a 3% increase from 2024[7]. - Total oil volume increased to 220,273 barrels per day, a 5% increase from the previous quarter and a 38% increase year-over-year[30]. - Natural gas volume reached 698,245 Mcf per day, reflecting an 11% increase from the previous quarter and a 4% increase year-over-year[30]. - Total BOE per day was 418,347, representing a 6% increase from the previous quarter and a 23% increase year-over-year[30]. - The company reported a total of 511,587 Mcf per day of natural gas production in the United States, a 9% increase from the previous quarter[30]. - Total oil reserves increased to 499.711 million barrels as of December 31, 2024, up from 379.125 million barrels at the end of 2023, reflecting a net increase of 31.7%[53]. - Total gas reserves reached 1.562 billion cubic feet by December 31, 2024, an increase of 2.1% from 1.530 billion cubic feet in 2023[55]. - The company reported total proved developed reserves of 969.097 million barrels of oil equivalent (Mboe) as of December 31, 2024, up from 807.480 Mboe in 2023, marking a growth of 20%[56]. Financial Position and Debt - APA's debt at year-end 2024 was $6 billion, with cash of $625 million, reflecting a net debt increase of only $300 million despite the Callon acquisition[8]. - Total debt decreased to $6,044 million in Q4 2024 from $6,372 million in Q3 2024, a reduction of 5%[48]. - Net debt as of December 31, 2024, was $5,419 million, down from $6,308 million in Q3 2024, indicating a decrease of 14%[48]. - Cash and cash equivalents increased significantly to $625 million in 2024 from $87 million in 2023, representing a growth of 618%[38]. - Total assets rose to $19,390 million in 2024, up from $15,244 million in 2023, marking an increase of 27%[38]. Capital Expenditure and Future Plans - APA plans a capital budget of $2.5 to $2.6 billion for 2025, including $200 million for the GranMorgu project and $100 million for exploration[11]. - The company aims to achieve $350 million in annual cost savings by the end of 2027 through various cost-reduction initiatives[13]. - Upstream capital investment, including noncontrolling interest in Egypt, was $650 million for Q4 2024, compared to $598 million in Q4 2023, reflecting an increase of 9%[40]. - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency and reserve recovery[52]. Costs and Expenses - Total costs incurred in oil and gas property for the year ended December 31, 2024, were $7,862 million, significantly higher than $2,719 million in 2023, reflecting a growth of 189%[40]. - Exploration expenses totaled $313 million for the quarter, with dry hole expenses accounting for $201 million[34]. - The company incurred transaction, reorganization, and separation costs of $138 million for the year ended December 31, 2024, compared to $10 million in 2023[51]. - Loss on previously sold Gulf of America properties for the year was $213 million, compared to $167 million in 2023, indicating an increase of 27.5%[51]. Shareholder Returns - The company returned $599 million to shareholders in 2024, representing 71% of free cash flow[7]. - Common shares outstanding increased to 365 million at the end of 2024 from 304 million in 2023, representing a growth of 20%[38].