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
| Category | Underlined | Word counter | Model’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