APA Slashes Q2 Natural Gas and NGL Output Amid Weak Gas Prices

Core Insights - APA Corporation has curtailed natural gas and NGL production in response to declining U.S. natural gas prices, reducing output by approximately 10 million cubic feet per day and 750 barrels per day respectively [1][9] - The company anticipates a significant drop in realized prices for natural gas and NGL in the second quarter, expecting $1 per thousand cubic feet and $19.80 per barrel, marking declines of about 50% and 29% from the previous quarter [2][9] - APA completed the sale of its New Mexico assets for $575 million, which resulted in a production decrease of around 1,800 barrels of oil equivalent per day, reflecting the company's strategy to streamline its portfolio [3][9] - The company's actions indicate a focus on capital discipline and asset optimization amid ongoing price volatility in the energy sector [4] Production and Pricing - U.S. natural gas prices faced pressure due to rising supply and subdued demand, leading to APA's production cuts [2] - The anticipated realized price for oil in the second quarter is $64.85 per barrel domestically, while international markets show stronger prices at $66.20 per barrel [2] Strategic Moves - The divestment of non-core assets is part of APA's strategy to concentrate capital in areas with higher returns [3] - The company's dual approach of cutting low-margin volumes and monetizing assets demonstrates its intent to remain resilient in changing market conditions [4]