Why Is APA (APA) Down 5.6% Since Last Earnings Report?

Core Viewpoint - APA's recent earnings report shows strong performance with adjusted earnings and revenue exceeding expectations, driven by increased production from the Callon Petroleum acquisition, despite a slight decline in share price over the past month [2][4]. Financial Performance - APA reported Q2 2024 adjusted earnings of $1.17 per share, surpassing the Zacks Consensus Estimate of 95 cents and improving from 85 cents in the previous year [2]. - Revenues reached $2.8 billion, a 42.4% increase from the same quarter last year, and exceeded the Zacks Consensus Estimate by 20.7% [2]. - The company returned value to shareholders through $92 million in dividends and repurchased 1.5 million shares at an average price of $28.72 [2]. Production & Costs - Average production was 473,409 BOE/d, up 18.7% year-over-year, with U.S. output increasing by 42.5% to 303,416 BOE/d [3]. - Lease operating expenses totaled $460 million, a 27.4% increase from the previous year, while total operating expenses rose 47.8% to $1.9 billion [4]. - APA generated $877 million in cash from operating activities and reported a free cash flow of $103 million, compared to $94 million a year ago [4]. Guidance - For Q3, APA expects adjusted production to average 388,000 BOE/d, with oil volumes projected at 208,000 Bbl/d [5]. - The company has set its upstream capital expenditure for the year at $2.7 billion or more [5]. Market Position & Outlook - The consensus estimate for APA has seen a downward shift of -6.49% recently, indicating mixed investor sentiment [7]. - APA holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [9]. - The stock has an aggregate VGM Score of B, with a strong value score but weaker momentum [8]. Industry Comparison - APA operates within the Zacks Oil and Gas - Exploration and Production - United States industry, where CNX Resources Corporation has seen a 6.5% gain over the past month [10]. - CNX Resources reported revenues of $346 million, reflecting a year-over-year increase of 2.7%, and has a Zacks Rank 3 (Hold) as well [10].