APA Q4 Earnings & Revenues Miss on Lower Oil Realizations

Core Viewpoint - APA Corporation reported lower-than-expected fourth-quarter 2023 earnings and revenues, primarily due to declining oil and natural gas prices, despite strong production levels [1] Financial Performance - Adjusted earnings per share for Q4 2023 were $1.15, missing the Zacks Consensus Estimate of $1.38 and down from $1.48 in the previous year [1] - Revenues totaled $1.9 billion, falling short of the Zacks Consensus Estimate of $2 billion and down 20.5% from the same quarter last year [1] - The company generated $1 billion in cash from operating activities and reported a free cash flow of $292 million, a decrease from $360 million a year ago [5] Production and Pricing - Average production of oil and natural gas was 414,430 BOE/d, with 67% being liquids, remaining stable year-over-year and exceeding expectations [3] - U.S. output increased by 5% year-over-year to 228,671 BOE/d, while international production decreased by 6% to 185,759 BOE/d [3] - The average realized crude oil price was $81.36 per barrel, down 5.6% from $86.17 a year ago, but above the projected $76.83 [3] Costs and Financial Position - Lease operating expenses for Q4 were $360 million, down 4.5% from $377 million in the previous year [4] - Total operating expenses decreased by 14.3% year-over-year to $1.4 billion [4] - As of December 31, the company had approximately $87 million in cash and cash equivalents and $5.2 billion in long-term debt, with a debt-to-capitalization ratio of 66.1% [6] Guidance - APA expects adjusted production to average between 328,000-330,000 BOE/d in Q1 2024 and 323,000-325,000 BOE/d for the full year [7] - The company has set its upstream capital expenditure for 2024 at $1.9-$2 billion [7]