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Earnings release · 8-K exhibit

APA Corporation · Earnings release

APA · Energy

Filed 2025-02-27 · CY2025 Q1 · Company’s FY2024 Q4 · 5,394 words

Read the original on sec.gov ↗

EX-99.12d886649dex991.htmEX-99.1 EX-99.1

Exhibit 99.1

NEWS RELEASE

APA Corporation Announces Fourth-Quarter and

Full-Year 2024 Financial and Operational Results

2024 Highlights

•

Delivered full-year net cash provided by operating activities of

$3.6 billion, adjusted EBITDAX of $5.9 billion, and $841 million of free cash flow (FCF);

•

Returned $599 million to shareholders or 71% of FCF;

•

Transformed Permian portfolio through the acquisition of Callon Petroleum Company and the sale of conventional

Central Basin Platform assets; realized an initial 22% reduction in breakeven oil price on Callon Delaware acreage;

•

Achieved final investment decision for the GranMorgu Phase 1 project in Suriname Block 58 with partner

TotalEnergies; and

•

Signed a new gas price agreement in Egypt, bringing gas-focusedinvestment to economic parity with oil.

2025 Outlook

•

G1Planning upstream capital budget of $2.5 to $2.6 billion; G2includes

$200 million for GranMorgu development and G3$100 million for exploration;

•

G4Total adjusted production expected to be 396,000 barrels of oil equivalent (BOE) per day; 3% higher than

2024;

•

Implementing cost-saving initiatives across overhead, lease operating expense (LOE) and capital, targeting

$350 million in run-rate savings by year-end 2027; and

•

G5Committed to returning at least 60% of FCF to shareholders.

HOUSTON, Feb. 26, 2025 – APA Corporation (Nasdaq: APA) today announced its financial and operational results for the fourth quarter and full-year 2024.

In the fourth quarter, APA reported net income attributable to common stock of $354 million or $0.96 per diluted common share. When adjusting for

items that impact the comparability of results, APA’s fourth-quarter earnings were $290 million, or $0.79 per diluted share. Net cash provided by operating activities was $1.0 billion, and adjusted EBITDAX was $1.6 billion.

Fourth-quarter reported production was 488,000 BOE per day. Adjusted production, excluding Egypt noncontrolling interest and tax barrels, was 418,000 BOE

per day.

For the full-year 2024, APA reported net income attributable to common stock of $804 million, or $2.27 per diluted common share. On an

adjusted basis, APA’s 2024 earnings totaled $1.3 billion or $3.77 per diluted common share. Reported full-year production was 455,000 BOE per day; adjusted production was 385,000 BOE per day. Full-year net cash provided by operating

activities was $3.6 billion, and adjusted EBITDAX was $5.9 billion.

Page 1 of 5

APA CORPORATION ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2024 FINANCIAL AND OPERATIONAL

RESULTS

During the year, APA generated $841 million of free cash flow, repurchased $246 million of common

stock, and paid $353 million in dividends. The company ended the year with debt of $6 billion and cash of $625 million, an increase in net debt of only $300 million from the end of 2023, despite adding over $2 billion of

debt with the Callon acquisition.

CEO Commentary

“Over the last several years, APA has been strategically reshaped in numerous ways. We have enhanced the quality and sustainability of the portfolio in

our core areas of the Permian Basin and the Western Desert of Egypt, while also building optionality through a differentiated exploration strategy,” said John J. Christmann IV, APA’s chief executive officer.

“In 2024, we continued this momentum with the acquisition of Callon, the final investment decision for the GranMorgu project in Suriname, and the new gas

agreement in Egypt. These actions have further strengthened our portfolio and improved the quality of our investment opportunities, positioning APA for long-term growth and success. We have assembled a large-scale unconventional position in the

Permian Basin, surpassing many of our pure-play peers. In addition, we made further progress on strengthening our balance sheet, achieving investment-grade status with all three rating agencies.”

2025 Capital Budget and Outlook

In 2025, APA plans to

invest $2.5 to $2.6 billion in upstream oil and gas capital. This includes $200 million toward progressing the GranMorgu project in Suriname and $100 million for exploration activities, predominantly in Alaska.

Total company adjusted production is expected to be relatively flat year-over-year at around 396,000 BOE per day. G6U.S. oil volumes should stay relatively

consistent at 125,000 to 127,000 barrels of oil per day, and gas volumes will benefit from no price-related curtailments. In Egypt, gross production is expected to decline modestly, while G7adjusted volumes should grow slightly year-over-year, to

69,000 BOE per day compared to 67,500 BOE per day in 2024.

Page 2 of 5

APA CORPORATION ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2024 FINANCIAL AND OPERATIONAL

RESULTS

“Our 2025 plan builds on the progress achieved in 2024,” continued Christmann. “Through

inventory expansion in the Permian Basin and the renegotiation of both oil and gas economics in Egypt, we have positioned our core producing portfolio to deliver steady and predictable production. We expect to run eight rigs in the Permian and 12

rigs in Egypt, leading to a slight increase year-over-year in Permian and adjusted Egypt volumes. This activity set translates to a G8combined development capital budget for Permian and Egypt of$2.2-$2.3 billion, 17% lower than 2024 development capital when adjusting for Callon’s first-quarter 2024 spend.”

Additionally, APA is undertaking significant cost reduction initiatives aimed at streamlining the business and improving operating practices. The company is

targeting at least $350 million in sustainable annual savings by the end of 2027 across LOE, capital and overhead.

“Our cost reduction efforts

follow the strategic realignment of our portfolio over the last few years. Our objective is to return our cost structure to a leading position by streamlining every aspect of the business while enhancing the predictability and delivery of our

long-term plan. We are confident that our disciplined approach to capital allocation and rigorous cost management will underpin strong free cash flow growth over the next few years, which will be further bolstered by the GranMorgu project in

Suriname, with first oil in 2028,” Christmann concluded.

Year-End 2024 Proved Reserves

Worldwide estimated proved reserves totaled 969 million BOE at year-end 2024, 69% of which were classified as

proved developed.

Conference Call

APA will host a

conference call to discuss its fourth-quarter and full-year 2024 results at 10 a.m. Central time, Thursday, Feb. 27. The conference call will be webcast from APA’s website at www.apacorp.com and investor.apacorp.com. Following the conference

call, a replay will be available for one year on the “Investors” page of the company’s website.

About APA

APA Corporation owns consolidated subsidiaries that explore for and produce oil and natural gas in the United States, Egypt and the United Kingdom and that

explore for oil and natural gas offshore Suriname and elsewhere. APA posts announcements, operational updates, investor information and press releases on its website, www.apacorp.com.

Page 3 of 5

APA CORPORATION ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2024 FINANCIAL AND OPERATIONAL

RESULTS

Additional Information

Additional information follows, including reconciliations of adjusted earnings, adjusted EBITDAX, upstream capital investment, net debt, cash flows from

operations before changes in operating assets and liabilities and free cash flow (non-GAAP financial measures) to GAAP measures and information regarding adjusted production. APA’s quarterly supplement is

available at http://www.apacorp.com/financialdata.

Non-GAAP Financial Measures

APA’s financial information includes information prepared in conformity with generally accepted accounting principles (GAAP) as well as non-GAAP financial information. It is management’s intent to provide non-GAAP financial information to enhance understanding of our consolidated financial information as

prepared in accordance with GAAP. Adjusted earnings, adjusted EBITDAX, upstream capital investment, net debt, cash flows from operations before changes in operating assets and liabilities and free cash flow arenon-GAAP measures. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with

GAAP. Each non-GAAP financial measure is presented along with the corresponding GAAP measure so as not to imply that more emphasis should be placed on the non-GAAPmeasure.

Forward-Looking Statements

This news

release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as

“anticipates,” “intends,” “plans,” “seeks,” “believes,” “continues,” “could,” “estimates,” “expects,” “goals,” “guidance,” “may,”

“might,” “outlook,” “possibly,” “potential,” “projects,” “prospects,” “should,” “will,” “would,” and similar references to future periods, but the absence of

these words does not mean that a statement is not forward-looking. These statements include, but are not limited to, statements about future plans, expectations, and objectives for operations, including statements about our capital plans, drilling

plans, production expectations, asset sales, and monetizations. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results

Page 4 of 5

APA CORPORATION ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2024 FINANCIAL AND OPERATIONAL

RESULTS

and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ

materially from our expectations. See “Risk Factors” in APA’s Form 10-K for the year ended December 31, 2023, and in our quarterly reports on Form10-Q (and in APA’s Form 10-K for the year ended December 31, 2024, when filed) for a discussion of risk factors that affect our business. Any forward-looking

statement made in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. APA and its

subsidiaries undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development or otherwise, except as may be required by law.

Cautionary Note to Investors

The United States

Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable, and possible reserves that meet the SEC’s definitions for such terms. APA may use certain terms in this news

release, such as “resources,” “potential resources,” “resource potential,” “estimated net reserves,” “recoverable reserves,” and other similar terms that the SEC guidelines strictly prohibit APA from

including in filings with the SEC. Such terms do not take into account the certainty of resource recovery, which is contingent on exploration success, technical improvements in drilling access, commerciality, and other factors, and are therefore not

indicative of expected future resource recovery and should not be relied upon. Investors are urged to consider carefully the disclosure in APA’s Annual Report on Form 10-K for the fiscal year ended Dec.

31, 2023 and in APA’s Form 10-K for the year ended December 31, 2024, when filed, available from APA at www.apacorp.com or by writing APA at: 2000 W. Sam Houston Pkwy S, Ste. 200, Houston, TX

77042 (Attn: Corporate Secretary). You can also obtain this report from the SEC by calling 1-800-SEC-0330 or from the SEC’s

website at www.sec.gov.

Contacts

Investor: (281) 302-2286

Media: (713) 296-7276

Website: www.apacorp.com

APA-F

-end-

Page 5 of 5

APA CORPORATION

STATEMENT OF CONSOLIDATED OPERATIONS

(Unaudited)

(In millions, except

per share data)

For the Quarter Ended

For the Year Ended

December 31,

December 31,

2024

2023

2024

2023

REVENUES AND OTHER:

Oil, natural gas, and natural gas liquids production revenues

Oil revenues

$

1,830

$

1,530

$

6,966

$

5,997

Natural gas revenues

170

222

584

880

Natural gas liquids revenues

189

133

646

508

2,189

1,885

8,196

7,385

Purchased oil and gas sales

523

282

1,541

894

Total revenues

2,712

2,167

9,737

8,279

Derivative instrument gain (loss), net

7

(5

)

(10

)

99

Gain on divestitures, net

5

1

289

8

Loss on previously sold Gulf of America properties

(190

)

(212

)

(273

)

(212

)

Other, net

(32

)

(59

)

(6

)

18

2,502

1,892

9,737

8,192

OPERATING EXPENSES:

Lease operating expenses

474

360

1,690

1,436

Gathering, processing, and transmission

104

89

432

334

Purchased oil and gas costs

382

184

1,047

742

Taxes other than income

65

44

270

207

Exploration

65

51

313

195

General and administrative

102

75

372

351

Transaction, reorganization, and separation

12

4

168

15

Depreciation, depletion, and amortization:

Oil and gas property and equipment

646

414

2,235

1,500

Other assets

7

9

31

40

Asset retirement obligation accretion

36

30

148

116

Impairments

18

15

1,129

61

Financing costs, net

91

77

367

312

2,002

1,352

8,202

5,309

NET INCOME BEFORE INCOME TAXES

500

540

1,535

2,883

Current income tax provision

308

316

1,153

1,338

Deferred income tax benefit

(233

)

(1,640

)

(736

)

(1,662

)

NET INCOME INCLUDING NONCONTROLLING INTERESTS

425

1,864

1,118

3,207

Net income attributable to noncontrolling interest

71

91

314

352

NET INCOME ATTRIBUTABLE TO COMMON STOCK

$

354

$

1,773

$

804

$

2,855

NET INCOME PER COMMON SHARE:

Basic

$

0.96

$

5.79

$

2.28

$

9.26

Diluted

$

0.96

$

5.78

$

2.27

$

9.25

WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:

Basic

369

306

353

308

Diluted

369

307

353

309

DIVIDENDS DECLARED PER COMMON SHARE

$

0.25

$

0.25

$

1.00

$

1.00

Page 1

APA CORPORATION

PRODUCTION INFORMATION

For the Quarter Ended

% Change

For the Year Ended

December 31,

September 30,

December 31,

4Q24 to

4Q24 to

December 31,

December 31,

2024

2024

2023

3Q24

4Q23

2024

2023

OIL VOLUME - Barrels per day

United States

147,573

143,299

83,909

3%

76%

128,531

78,889

Egypt (1, 2)

89,927

91,673

92,365

-2%

-3%

89,027

89,129

North Sea

27,683

21,334

30,748

30%

-10%

26,340

34,728

International (1)

117,610

113,007

123,113

4%

-4%

115,367

123,857

Total (1)

265,183

256,306

207,022

3%

28%

243,898

202,746

NATURAL GAS VOLUME - Mcf per day

United States

511,587

467,615

462,498

9%

11%

483,446

452,281

Egypt (1, 2)

300,118

300,418

309,814

0%

-3%

291,011

325,778

North Sea

36,842

18,911

58,054

95%

-37%

39,986

50,284

International (1)

336,960

319,329

367,868

6%

-8%

330,997

376,062

Total (1)

848,547

786,944

830,366

8%

2%

814,443

828,343

NGL VOLUME - Barrels per day

United States

80,390

79,474

67,679

1%

19%

73,877

62,997

North Sea

1,311

543

1,335

141%

-2%

1,201

1,240

Total (1)

81,701

80,017

69,014

2%

18%

75,078

64,237

BOE per day

United States

313,227

300,709

228,671

4%

37%

282,983

217,266

Egypt (1, 2)

139,947

141,742

144,001

-1%

-3%

137,529

143,425

North Sea

35,134

25,029

41,758

40%

-16%

34,204

44,349

International (1)

175,081

166,771

185,759

5%

-6%

171,733

187,774

Total (1)

488,308

467,480

414,430

4%

18%

454,716

405,040

Total excluding noncontrolling interests

441,618

420,199

366,352

5%

21%

408,838

357,184

(1) Includes net production

volumes attributed to our noncontrolling partner in Egypt below:

Oil (b/d)

30,002

30,579

30,837

29,698

29,739

Gas (Mcf/d)

100,127

100,210

103,443

97,078

108,703

BOE per day

46,690

47,281

48,078

45,878

47,856

(2) Egypt Gross

Production

Oil (b/d)

134,504

136,670

141,953

137,150

141,985

Gas (Mcf/d)

438,052

447,173

466,403

443,551

500,080

BOE per day

207,513

211,199

219,687

211,075

225,332

Page 2

APA CORPORATION

ADJUSTED PRODUCTION INFORMATION

Adjusted

production excludes certain items that management believes affect the comparability of operating results for the periods presented. Adjusted production excludes production attributable to 1) noncontrolling interest in Egypt and 2) Egypt tax barrels.

Management uses adjusted production to evaluate the company’s operational trends and performance and believes it is useful to investors and other third parties.

For the Quarter Ended

% Change

For the Year Ended

December 31,

2024

September 30,

2024

December 31,

2023

4Q24 to

3Q24

4Q24 to

4Q23

December 31,

2024

December 31,

2023

OIL VOLUME - Barrels per day

United States

147,573

143,299

83,909

3%

76%

128,531

78,889

Egypt

45,017

44,627

45,204

1%

0%

43,817

43,349

North Sea

27,683

21,334

30,748

30%

-10%

26,340

34,728

International

72,700

65,961

75,952

10%

-4%

70,157

78,077

Total

220,273

209,260

159,861

5%

38%

198,688

156,966

NATURAL GAS VOLUME - Mcf per day

United States

511,587

467,615

462,498

9%

11%

483,446

452,281

Egypt

149,816

145,190

150,212

3%

0%

142,363

157,269

North Sea

36,842

18,911

58,054

95%

-37%

39,986

50,284

International

186,658

164,101

208,266

14%

-10%

182,349

207,553

Total

698,245

631,716

670,764

11%

4%

665,795

659,834

NGL VOLUME - Barrels per day

United States

80,390

79,474

67,679

1%

19%

73,877

62,997

North Sea

1,311

543

1,335

141%

-2%

1,201

1,240

Total

81,701

80,017

69,014

2%

18%

75,078

64,237

BOE per day

United States

313,227

300,709

228,671

4%

37%

282,983

217,266

Egypt

69,986

68,825

70,239

2%

0%

67,544

69,561

North Sea

35,134

25,029

41,758

40%

-16%

34,204

44,349

International

105,120

93,854

111,997

12%

-6%

101,748

113,910

Total

418,347

394,563

340,668

6%

23%

384,731

331,176

Page 3

APA CORPORATION

PRICE INFORMATION

For the Quarter Ended

For the Year Ended

December 31,

September 30,

December 31,

December 31,

December 31,

2024

2024

2023

2024

2023

AVERAGE OIL PRICE PER BARREL

United States

$

70.38

$

76.34

$

79.04

$

75.92

$

77.84

Egypt

74.54

79.88

83.67

80.41

82.47

North Sea

75.42

83.36

80.70

80.74

82.75

International

74.80

80.38

82.98

80.48

82.55

Total

72.42

78.06

81.36

78.08

80.72

AVERAGE NATURAL GAS PRICE PER MCF

United States

$

1.01

$

0.16

$

1.62

$

0.71

$

1.80

Egypt

2.97

2.93

2.89

2.94

2.91

North Sea

14.40

9.76

13.46

10.84

13.02

International

4.03

3.30

4.56

3.82

4.25

Total

2.20

1.43

2.92

1.97

2.91

AVERAGE NGL PRICE PER BARREL

United States

$

24.52

$

20.91

$

19.82

$

22.83

$

20.85

North Sea

50.65

45.93

48.16

47.59

47.77

Total

25.08

21.29

20.70

23.37

21.54

Page 4

APA CORPORATION

SUPPLEMENTAL FINANCIAL INFORMATION

(Unaudited)

(In millions)

SUMMARY EXPLORATION EXPENSE INFORMATION

For the Quarter Ended

For the Year Ended

December 31,

December 31,

2024

2023

2024

2023

Unproved leasehold impairments

$

24

$

2

$

35

$

22

Dry hole expense

29

21

201

92

Geological and geophysical expense

—

16

21

19

Exploration overhead and other

12

12

56

62

$

65

$

51

$

313

$

195

SUMMARY CASH FLOW INFORMATION

For the Quarter Ended

For the Year Ended

December 31,

December 31,

2024

2023

2024

2023

Net cash provided by operating activities

$

1,036

$

1,030

$

3,620

$

3,129

Additions to upstream oil and gas property

(698

)

(575

)

(2,851

)

(2,313

)

Leasehold and property acquisitions

4

—

(60

)

(44

)

Proceeds from asset divestitures

885

—

1,609

29

Proceeds from sale of Kinetik shares

—

228

428

228

Other, net

(108

)

(9

)

(50

)

(38

)

Net cash provided by (used in) investing activities

$

83

$

(356

)

$

(924

)

$

(2,138

)

Payments on commercial paper and revolving credit facilities, net

(230

)

(396

)

(40

)

(194

)

Proceeds from term loan facility

—

—

1,500

—

Payments on term loan facility

(100

)

—

(600

)

—

Payment on Callon Credit Agreement

—

—

(472

)

—

Payments on fixed-rate debt

—

—

(1,641

)

(65

)

Distributions to noncontrolling interest

(35

)

(84

)

(268

)

(238

)

Treasury stock activity, net

(100

)

(121

)

(246

)

(329

)

Dividends paid to APA common stockholders

(93

)

(76

)

(353

)

(308

)

Other, net

—

(5

)

(38

)

(15

)

Net cash used in financing activities

$

(558

)

$

(682

)

$

(2,158

)

$

(1,149

)

SUMMARY BALANCE SHEET INFORMATION

December 31,

December 31,

2024

2023

Cash and cash equivalents

$

625

$

87

Other current assets

2,779

2,375

Property and equipment, net

12,646

10,038

Decommissioning security for sold Gulf of America properties

21

21

Other assets

3,319

2,723

Total assets

$

19,390

$

15,244

Current debt

$

53

$

2

Current liabilities

2,902

2,402

Long-term debt

5,991

5,186

Decommissioning contingency for sold Gulf of America properties

929

764

Deferred credits and other noncurrent liabilities

3,153

3,199

APA shareholders’ equity

5,280

2,655

Noncontrolling interest

1,082

1,036

Total Liabilities and equity

$

19,390

$

15,244

Common shares outstanding at end of period

365

304

Page 5

APA CORPORATION

NON-GAAP FINANCIAL MEASURES

(In millions, except per share data)

Reconciliation of Costs incurred to Upstream capital investment

Management believes the presentation of upstream capital investments is useful for investors to assess APA’s expenditures related to our upstream capital

activity. We define capital investments as costs incurred for oil and gas activities, adjusted to exclude property acquisitions, asset retirement obligation revisions and liabilities incurred, capitalized interest, and certain exploration expenses,

while including amounts paid during the period for abandonment and decommissioning expenditures. Upstream capital expenditures attributable to a one-third noncontrolling interest in Egypt are also excluded.

Management believes this provides a more accurate reflection of APA’s cash expenditures related to upstream capital activity and is consistent with how we plan our capital budget.

For the Quarter Ended

For the Year Ended

December 31,

December 31,

2024

2023

2024

2023

Costs incurred in oil and gas property:

Asset and leasehold acquisitions

$

10

$

10

$

4,564

$

25

Exploration and development

752

969

3,298

2,694

Total Costs incurred in oil and gas property

$

762

$

979

$

7,862

$

2,719

Reconciliation of Costs incurred to Upstream capital investment:

Total Costs incurred in oil and gas property

$

762

$

979

$

7,862

$

2,719

Property acquisitions

(12

)

—

(4,562

)

(1

)

Asset retirement obligations settled vs. incurred - oil and gas property

(81

)

(347

)

(244

)

(327

)

Capitalized interest

(7

)

(6

)

(29

)

(24

)

Exploration seismic and administration costs

(12

)

(28

)

(77

)

(81

)

Upstream capital investment including noncontrolling interest - Egypt

$

650

$

598

$

2,950

$

2,286

Less noncontrolling interest - Egypt

(58

)

(78

)

(253

)

(281

)

Total Upstream capital investment

$

592

$

520

$

2,697

$

2,005

Reconciliation of Net cash provided by operating activities to Cash flows from operations before changes in operating

assets and liabilities and Free cash flow

Cash flows from operations before changes in operating assets and liabilities and free cash flow are non-GAAP financial measures. APA uses these measures internally and provides this information because management believes it is useful in evaluating the company’s ability to generate cash to internally fund

exploration and development activities, fund dividend programs, and service debt, as well as to compare our results from period to period. We believe these measures are also used by research analysts and investors to value and compare oil and gas

exploration and production companies and are frequently included in published research reports when providing investment recommendations. Cash flows from operations before changes in operating assets and liabilities and free cash flow are additional

measures of liquidity but are not measures of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing, or financing activities. Additionally, this presentation of free cash flow may not

be comparable to similar measures presented by other companies in our industry.

For the Quarter Ended

For the Year Ended

December 31,

December 31,

2024

2023

2024

2023

Net cash provided by operating activities

$

1,036

$

1,030

$

3,620

$

3,129

Changes in operating assets and liabilities

107

(23

)

535

417

Cash flows from operations before changes in operating assets and liabilities

$

1,143

$

1,007

$

4,155

$

3,546

Adjustments to free cash flow:

Upstream capital investment including noncontrolling interest—Egypt

(650

)

(598

)

(2,950

)

(2,286

)

Decommissioning spend on previously sold Gulf of America properties

(24

)

—

(63

)

—

Non oil and gas capital investment

(14

)

(33

)

(33

)

(57

)

Distributions to Sinopec noncontrolling interest

(35

)

(84

)

(268

)

(238

)

Free cash flow

$

420

$

292

$

841

$

965

Reconciliation of Net cash provided by operating activities to Adjusted EBITDAX

Management believes EBITDAX, or earnings before income tax expense, interest expense, depreciation, amortization and exploration expense is a widely accepted

financial indicator, and useful for investors, to assess a company’s ability to incur and service debt, fund capital expenditures, and make distributions to shareholders. We define adjusted EBITDAX, anon-GAAP financial measure, as EBITDAX adjusted for certain items presented in the accompanying reconciliation. Management uses adjusted EBITDAX to evaluate our ability to fund our capital expenditures, debt

services and other operational requirements and to compare our results from period to period by eliminating the impact of certain items that management does not consider to be representative of the Company’son-going operations. Management also believes adjusted EBITDAX facilitates investors and analysts in evaluating and comparing EBITDAX from period to period by eliminating differences caused by the existence

and timing of certain operating expenses that would not otherwise be apparent on a GAAP basis. However, our presentation of adjusted EBITDAX may not be comparable to similar measures of other companies in our industry.

For the Quarter Ended

For the Year Ended

December 31,

September 30,

December 31,

December 31,

2024

2024

2023

2024

2023

Net cash provided by operating activities

$

1,036

$

1,339

$

1,030

$

3,620

$

3,129

Adjustments:

Exploration expense other than dry hole expense and unproved leasehold impairments

12

20

28

77

81

Current income tax provision

308

260

316

1,153

1,338

Other adjustments to reconcile net income to net cash provided by operating activities

(16

)

45

(71

)

(2

)

(26

)

Changes in operating assets and liabilities

107

(221

)

(23

)

535

417

Financing costs, net

91

100

77

367

321

Transaction, reorganization & separation costs

12

14

4

168

15

Adjusted EBITDAX (Non-GAAP)

$

1,550

$

1,557

$

1,361

$

5,918

$

5,275

Page 6

APA CORPORATION

NON-GAAP FINANCIAL MEASURES

(In millions)

Reconciliation of debt to

net debt

Net debt, or outstanding debt obligations less cash and cash equivalents, is a non-GAAP financial

measure. Management uses net debt as a measure of the Company’s outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand.

December 31,

September 30,

June 30,

March 31,

2024

2024

2024

2024

Current debt

$

53

$

2

$

2

$

2

Long-term debt

5,991

6,370

6,741

5,178

Total debt

6,044

6,372

6,743

5,180

Cash and cash equivalents

625

64

160

102

Net debt

$

5,419

$

6,308

$

6,583

$

5,078

Reconciliation of Income attributable to common stock to Adjusted earnings

Our presentation of adjusted earnings and adjusted earnings per share are non-GAAP measures because they exclude the

effect of certain items included in Income Attributable to Common Stock. Management believes that adjusted earnings and adjusted earnings per share provides relevant and useful information, which is widely used by analysts, investors and competitors

in our industry as well as by our management in assessing the Company’s operational trends and comparability of results to our peers.

Management

uses adjusted earnings and adjusted earnings per share to evaluate our operating and financial performance because it eliminates the impact of certain items that management does not consider to be representative of the Company’s on-going business operations. As a performance measure, adjusted earnings may be useful to investors in facilitating comparisons to others in the Company’s industry because certain items can vary substantially

in the oil and gas industry from company to company depending upon accounting methods, book value of assets, capital structure and asset sales and other divestitures, among other factors. Management believes excluding these items facilitates

investors and analysts in evaluating and comparing the underlying operating and financial performance of our business from period to period by eliminating differences caused by the existence and timing of certain expense and income items that would

not otherwise be apparent on a GAAP basis. However, our presentation of adjusted earnings and adjusted earnings per share may not be comparable to similar measures of other companies in our industry.

For the Quarter Ended

For the Quarter Ended

December 31, 2024

December 31, 2023

Before

Tax

After

Diluted

Before

Tax

After

Diluted

Tax

Impact

Tax

EPS

Tax

Impact

Tax

EPS

Net income including noncontrolling interests (GAAP)

$

500

$

(75

)

$

425

$

1.15

$

540

$

1,324

$

1,864

$

6.08

Income attributable to noncontrolling interests

129

(58

)

71

0.19

163

(72

)

91

0.30

Net income attributable to common stock

371

(17

)

354

0.96

377

1,396

1,773

5.78

Adjustments: *

Asset and unproved leasehold impairments

42

(16

)

26

0.07

17

(4

)

13

0.04

Valuation allowance and EPL revaluation

—

(11

)

(11

)

(0.03

)

—

(1,634

)

(1,634

)

(5.33

)

Other tax adjustments

—

(224

)

(224

)

(0.61

)

—

—

—

—

Unrealized derivative instrument (gain) loss

(10

)

2

(8

)

(0.02

)

10

(2

)

8

0.03

Loss on previously sold Gulf of America properties

190

(42

)

148

0.40

212

(45

)

167

0.54

Kinetik equity investmentmark-to-market loss

—

—

—

—

29

(6

)

23

0.08

Transaction, reorganization & separation costs

12

(3

)

9

0.03

4

(2

)

2

0.01

Gain on divestitures, net

(5

)

1

(4

)

(0.01

)

(1

)

1

—

—

Adjusted earnings (Non-GAAP)

$

600

$

(310

)

$

290

$

0.79

$

648

$

(296

)

$

352

$

1.15

For the Year Ended

For the Year Ended

December 31, 2024

December 31, 2023

Before

Tax

After

Diluted

Before

Tax

After

Diluted

Tax

Impact

Tax

EPS

Tax

Impact

Tax

EPS

Net income including noncontrolling interests (GAAP)

$

1,535

$

(417

)

$

1,118

$

3.16

$

2,883

$

324

$

3,207

$

10.39

Income attributable to noncontrolling interests

570

(256

)

314

0.89

628

(276

)

352

1.14

Net income attributable to common stock

965

(161

)

804

2.27

2,255

600

2,855

9.25

Adjustments: *

Asset and unproved leasehold impairments

1,164

(558

)

606

1.71

83

(50

)

33

0.11

Valuation allowance and EPL revaluation

—

5

5

0.02

—

(1,627

)

(1,627

)

(5.27

)

Other tax adjustments

—

(224

)

(224

)

(0.63

)

—

—

—

—

Gain on extinguishment of debt

—

—

—

—

(9

)

2

(7

)

(0.02

)

Unrealized derivative instrument (gain) loss

8

(2

)

6

0.02

(51

)

11

(40

)

(0.13

)

Loss on previously sold Gulf of America properties

273

(60

)

213

0.60

212

(45

)

167

0.54

Kinetik equity investmentmark-to-market loss

9

—

9

0.03

12

(2

)

10

0.03

Drilling contract termination charges

—

—

—

—

13

(10

)

3

0.01

Transaction, reorganization & separation costs

168

(30

)

138

0.39

15

(5

)

10

0.03

Gain on divestitures, net

(289

)

63

(226

)

(0.64

)

(8

)

2

(6

)

(0.02

)

Adjusted Earnings (Non-GAAP)

$

2,298

$

(967

)

$

1,331

$

3.77

$

2,522

$

(1,124

)

$

1,398

$

4.53

*

The income tax effect of the reconciling items are calculated based on the statutory rate of the jurisdiction

in which the discrete item resides.

Page 7

APA CORPORATION

OIL & GAS RESERVES INFORMATION

For the Year Ended December 31, 2024

OIL (Mbbl)

U.S.

Egypt1

North Sea

Suiname

Total1

Balance - Dec 31, 2023

210,490

107,559

61,076

—

379,125

Extensions and Discoveries

100,778

18,115

—

73,637

192,530

Purchases

124,112

—

—

—

124,112

Revisions

(9,642

)

10,521

(21,000

)

—

(20,121

)

Production

(47,043

)

(32,584

)

(9,640

)

—

(89,267

)

Sales

(86,668

)

—

—

—

(86,668

)

Balance - Dec 31, 2024

292,027

103,611

30,436

73,637

499,711

NGL’s (Mbbl)

U.S.

Egypt1

North Sea

Suiname

Total1

Balance - Dec 31, 2023

171,887

—

1,460

—

173,347

Extensions and Discoveries

62,988

—

—

—

62,988

Purchases

51,406

—

—

—

51,406

Revisions

(20,167

)

—

(277

)

—

(20,444

)

Production

(27,039

)

—

(439

)

—

(27,478

)

Sales

(30,878

)

—

—

—

(30,878

)

Balance - Dec 31, 2024

208,197

—

744

—

208,941

GAS (MMcf)

U.S.

Egypt1

North Sea

Suiname

Total1

Balance - Dec 31, 2023

1,103,451

379,756

46,839

—

1,530,046

Extensions and Discoveries

354,267

60,366

—

—

414,633

Purchases

279,615

—

—

—

279,615

Revisions

(224,118

)

26,792

(4,176

)

—

(201,502

)

Production

(176,941

)

(106,510

)

(14,635

)

—

(298,086

)

Sales

(162,039

)

—

—

—

(162,039

)

Balance - Dec 31, 2024

1,174,235

360,404

28,028

—

1,562,667

TOTAL BOE (Mboe)

U.S.

Egypt1

North Sea

Suiname

Total1

Balance - Dec 31, 2023

566,285

170,852

70,343

—

807,480

Extensions and Discoveries

222,811

28,176

—

73,637

324,624

Purchases

222,121

—

—

—

222,121

Revisions

(67,162

)

14,986

(21,973

)

—

(74,149

)

Production

(103,572

)

(50,336

)

(12,518

)

—

(166,426

)

Sales

(144,553

)

—

—

—

(144,553

)

Balance - Dec 31, 2024

695,930

163,678

35,852

73,637

969,097

Proved developed reserves:

Oil (Mbbls)

184,744

95,990

30,436

—

311,170

NGL’s (Mbbls)

153,523

—

744

—

154,267

Gas (Mboe)

144,410

55,484

4,672

—

204,566

Balance - Dec 31, 2024 (Mboe)

482,677

151,474

35,852

—

670,003

(1)

Includes reserves attributable to noncontrolling interest in Egypt.

Page 8

Mentions · how they’re counted

CategoryUnderlinedWord counterModel’s count
AI

AI, artificial intelligence, generative AI, machine learning, large language model, LLM

0——
Layoffs

layoffs, RIF, headcount reduction, workforce optimization, restructuring

0——
Recession

recession, downturn, contraction, slowdown

0——
Tariffs

tariff, trade war, trade barriers, trade restrictions, trade policy

0——
Buybacks

share repurchase, buyback program

0——

Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.

Source: SEC EDGAR · public domain · Highlights by Palanor